Sentiment indicators are measures or tools used to understand and gauge the overall sentiment or mood of a particular group or market. They provide insight into people's opinions, beliefs, or emotions, helping predict their behavior or market trends.
Full definition
The following chart, taken from the paper, shows the behavior of the aggregate sentiment index derived from the six
sentiment indicators listed above over the period 1962 - 2005.
There is a
trading sentiment indicator plus multiple windows which make it easier for you to place trades on more than one binary option.
The high /
low sentiment indicator compares the number of stocks making 52 - week highs to the number of stocks making 52 - week lows.
These factors are often indicative of large scale asset allocation shifts, sector rotation opportunities, and / or
shifting sentiment indicators.
With sentiment indicators buoyant, margin debt close to historic levels and indices trading close to their 2 standard deviation based on forward PE over five years, investors need to be mindful that a correction can easily unfold.
A fixation on following black - box systems, chart oscillators,
sentiment indicators like tick, trin, put / call, squeezes, etc is more myopic view of trees.
A rise
in sentiment indicators is another reason to be hopeful after Thursday's GDP data confirmed Japan's economy remains in recession, HSBC said.
Bank of America Merrill Lynch's
sentiment indicator shows that, at current levels, total returns could pop 19 percent based on historical data.
In the recent August 16 Striking Price column in Barron's, Steven Sears authored a piece entitled «A New Vision of VIX» that noted — «Over the past 21 years, the CBOE Volatility Index, or VIX, has emerged as one of Wall Street's most
watched sentiment indicators.
Composite Treasuries Sentiment: Taking a broader view of bond market sentiment (our composite bond market
sentiment indicator combines the signal from futures positioning, fund flows, implied volatility, and global bond market breadth), it's readily apparent that bond market sentiment has seen a reset from relatively stretched bearishness to just on the bullish side of neutral (i.e. the indicator is saying participants have gone from expecting higher bond yields to expecting lower bond yields).
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Retail sentiment indicators also look to have peaked in January and we do not see anything on the horizon to get retail investors more bullish than they were following a tax cut.»
It s a very good
market sentiment indicators, notifying traders when more sellers have gotten in the market and that the market will most likely keep heading in the direction of that signal.
«Despite the gloomy (GDP) headlines, recent high - frequency data and
sentiment indicators suggest that the worst is over for Japan's economy and we expect a return to growth in the first quarter of 2013,» analysts at HSBC said in a note.
So, we «re at the high end of the range as far as both of
these sentiment indicators are concerned looking back throughout the cycle.
On the subject of record low cash levels in equity funds, juxtaposed against a seeming mountain of «cash sitting on the sidelines» in money market funds, I should note that cash levels in equity funds are
a sentiment indicator, not a liquidity indicator.
See «Purifying Stock Market
Sentiment Indicators», with findings that the CBOE Equity put - call ratio add little or no information beyond that in recent price action.
Sentiment indicators may have picked up across much of the world, but large parts of the global economy continue to rely on substantial monetary stimulus, and political risk remains a significant concern for investors, in both Europe and the United States.
In contrast, while surveys of consumer confidence generally remained close to recent highs,
these sentiment indicators were somewhat at odds with underlying levels of economic activity.
Based on fund flow analysis, investors appear not to exploit media coverage as
a sentiment indicator.
On a related matter, applying TA to economic statistics or
sentiment indicators is a total waste of time.
The Commitments of Traders (COT) reports are nothing other than
sentiment indicators, but as far as sentiment indicators go they are among the most useful.
The public buys the most at the top and the least at the bottom That's why contrarian - minded investors can make good money if they follow
the sentiment indicators and have good timing.