This is all fine and good as a contrary indicator and has been
very effective over the past decade. It should also be noted that
it was below -60% for 24 weeks from 2000-2002 and resulted in an
average 6-month return of -6.6% in the Nasdaq Composite.
Think of sentiment as a secondary indicator and focus on PRICE
as King
Sentiment Trader Response
Bearish sentiment extremes: https://twitter.com/MacroCharts/status/1484495998864920578 Of course, I recall foolishly trying to ...
Posted by steve on 21st of Jan 2022 at 08:58 am
This is all fine and good as a contrary indicator and has been very effective over the past decade. It should also be noted that it was below -60% for 24 weeks from 2000-2002 and resulted in an average 6-month return of -6.6% in the Nasdaq Composite.
Think of sentiment as a secondary indicator and focus on PRICE as King
will do. Thanks.
Posted by curranjohn on 21st of Jan 2022 at 10:26 am
will do. Thanks.