Subscribe Feed (RSS)A new market sentiment gauge (in the making)
October 12th, 2005 by eyal | Filed under General rant. |
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Every time I read comments about general market direction from Trading Markets my personal assessment of market direction gets a boost to the opposite direction. This recent article Here’s 2 Setups For This Oversold Market is no exception. I am not commenting on the strategy outlined, just the title. There are some good articles on Trading Markets but I think I am noticing a tendency for their writers to go with general public sentiment when assessing the market and naming the topics, and as we all know, the general public is more often wrong than not.
I’ll try to monitor this (if only I had the discipline to document things properly, sigh) and revist it periodically.
Hey Eyal,
How’s trading? Interesting market opinion.I’m no expert on the macro of the markets,but usually when everyone is crying oversold the market can remain oversold for an extended period. Somehow that article threw me off also between the title and the fact that the author recommends more shorts for this “oversold” market. Personally I just trade ‘em as I see ‘em. I think on a percentage basis compared to some other market periods this market is far from oversold,but that could all change in the blink of an eye.
Cheers
Hey Doug, to be frank I don’t really have a market opinion. I just try to follow my system and let it determine my bias based on trade candidates/triggers. I haven’t been day (or night) trading for the last couple of weeks. It’s been quite challenging fitting it with my time zone and job plus I realized I had better results with my swing trading. I’ll probably get back to it in the not too distant future.
Cheers
Eyal
[...] As was expected from the new sentiment gauge (read: as was luckily guessed this time) the market was not quite oversold and continued to decline further today. [...]