Sunday, April 10, 2011
As we spring from the financial armageddon that was 2008, market sentiment has been swinging as wildly as Charlie Sheen’s public persona. One week the sky is falling in Europe – the next it’s a Fed induced panacea a trader would be foolish to ignore. And yet throughout the tumult and bipolar emotional spasms that have become as commonplace as a Charlie Sheen meltdown, the market continues to demonstrate all the characteristics and innuendo we have come to understand is Winning.
|Google Trends – Zero Hedge|
I believe that these weekly market sentiment figures, when applied to the broader indexes, are about as worthwhile as interpreting the monthly BLS employment reports. They typically are not that useful – but everyone still squawks about them and finds their predetermined expectations within the data slices.
With that said, the widely held contrarian perspective towards these sentiment surveys is now overlapping my own expectations for the market in the short to intermediate time frames. I just arrived at those conclusions through different means.