Investor Sentiment
The principles of Contrarian Investing hold that when the vast majority of people agree on anything, they are generally wrong. Otherwise no market would function because there is simply no minority with money enough to make a majority rich. A true contrarian, therefore, will first try to determine what the majority are doing and then will act in the opposite direction. Market Vane, AAII and Investors Intelligence are all contrary opinion indicators.
A unique feature of Market Vane's Bullish Consensus numbers is a weighting
formula applied to the various market letters. More weight is given to
letters with a larger following and less weight to those with fewer readers.
Each week a poll of market letters is taken to determine the degree of
bullishness or bearishness among futures professionals. The theory is
that when a significant number of participants are bullish, they are already
positioned on the long side and there is little potential buying power
left. If most participants are bearish, selling pressure has reached an
extreme and prices will reverse to the upside.
Dow Jones for comparison | S&P 500 for comparison | Main Menu | Updated charts are available on WallStreetCourier.com
Dow Jones for comparison | S&P 500 for comparison | Main Menu | Updated charts are available on WallStreetCourier.com
Past performance does not guarantee future results!
