Comments on: Sentiment Overview: Week Of January 30th, 2009 http://www.tradersnarrative.com/sentiment-overview-week-of-january-30th-2009-2252.html Freshly squeezed market commentary & analysis Sun, 21 Mar 2010 05:38:44 +0000 http://wordpress.org/?v=2.0.2 by: Babak http://www.tradersnarrative.com/sentiment-overview-week-of-january-30th-2009-2252.html#comment-36882 Tue, 03 Feb 2009 04:04:28 +0000 http://www.tradersnarrative.com/sentiment-overview-week-of-january-30th-2009-2252.html#comment-36882 Wes, thanks for your comment. I do look at the Rydex ratios but since the rise of ETFs and leveraged ETFs, their usage has fallen off dramatically. I agree with your assessment that metrics which point to where the money is going are much better than simply surveys of opinion. And I've mentioned similar sentiment data, for example options sentiment for the ISE and CBOE market. In the end though, sentiment and contrarian analysis is a blend of art and science and only one aspect of the market. Wes, thanks for your comment. I do look at the Rydex ratios but since the rise of ETFs and leveraged ETFs, their usage has fallen off dramatically. I agree with your assessment that metrics which point to where the money is going are much better than simply surveys of opinion. And I’ve mentioned similar sentiment data, for example options sentiment for the ISE and CBOE market. In the end though, sentiment and contrarian analysis is a blend of art and science and only one aspect of the market.

]]> by: Wes http://www.tradersnarrative.com/sentiment-overview-week-of-january-30th-2009-2252.html#comment-36833 Sat, 31 Jan 2009 22:29:51 +0000 http://www.tradersnarrative.com/sentiment-overview-week-of-january-30th-2009-2252.html#comment-36833 Through this entire bear market every sentiment indicator you have presented has given false signals. The Rydex Ratio, an indicator I follow has given a buy signal only twice, that in October (at the thus far internal low) and an even stronger buy at the November (external) low. Perhaps you could include this sentiment indicator in the future. One reason I think it seems to work better than those you follow, it is based on what the public is doing (with their money) rather that what they are thinking, or say they are thinking. Through this entire bear market every sentiment indicator you have presented has given false signals. The Rydex Ratio, an indicator I follow has given a buy signal only twice, that in October (at the thus far internal low) and an even stronger buy at the November (external) low.

Perhaps you could include this sentiment indicator in the future.

One reason I think it seems to work better than those you follow, it is based on what the public is doing (with their money) rather that what they are thinking, or say they are thinking.

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