Market Sentiment
I was having breakfast with a an “old” friend ( I don’t mean age ) this morning. I was asked how I felt about the current market situation. Generally , world market has been bullish for quite a while. Is it time or is it too late to get into the market now ? Can I open an trading account now ? Will I missed the boat ? These are some of the common questions people tend to ask … especially when market peaks to tops or bottoms.
That brings me to my discussion topic here - Market Sentiment. Sentiment is just another word for “feelings”. It is amazing how public “feelings” tends to be closely correlated with stock market price. In other words , very negative opinions are usually predominant during the bottoming phase of a market move , and , very positive opinions are usually prevalent during the topping phase of a market move.
Market sentiment is not a trading method which can be used independently. However , it is a valuable ” …
