Market Sentiment

Used for an insight into possible market sentiment about equity securities.
Basing: A period where the stock or market is "catching its breath" after a decline, characterized by a flat trading range without any noticeable trend.

Bearish The term used to describe the market sentiment of people who expect a general market decline. Best Ask or Best Offer The lowest quoted offer of all competing market makers to sell a particular security at any given time.

Sometimes I traded in and out in a few minutes or hours or would hold for a few days depending on market sentiment. Some examples: 11/27/1998 09:49:45 Bought 1000 NAVR 9 1/8, 11/30/98 sold NAVR at 16.

The formation reflects a classic three period reversal of market sentiment where after a bullish trend; enough sellers enter the market to take control.

The Kurtosis Forex Indicator is a market sentiment indicator. MetaStock formula for the Kurtosis is as follows:
Mov (Mov (Mo (3)-Ref (Mo (3), -1), 66, E) 3, C)
The Kurtosis is built from three different parts.

A strong indication that the rally on Day 2 was significant and truly a reversal of market sentiment, is if there was a substantial increase in volume that accompanied the large move upward in price (see: Volume).

The Specialist/Public Short Sales Ratio is a market sentiment indicator. It is calculated by dividing the volume of the weekly short sales made by the public (non members) by the weekly short sales made by stock exchange specialists (members).

Short term trends in commodities or other trading are typically due to market sentiment. In reading market sentiment the trader will rely on Candlestick analysis to let the market tell him when the market will do.

The price of a currency pair is the only input studied by technical analysists because they believe it to be the ultimate representation of market sentiment at any given moment.

assets, relative valuation strategies that compare the pricing of individual assets to the pricing of assets that are "comparable" to them, technical analysis strategies that use price and volume indicators to predict shifts in market sentiment and ...

Question: How do you manage market sentiment?
Answer: I start with a bias and then let the market show me what it wants to do. If price action supports my bias, I get more aggressive.

It is representative of the market sentiment. Normally the index components are the highly traded stocks of that exchange. Usually they represent about 80 to 85 percent of the market capitalization and trading.

Tradetrek offers the Index Center as a useful snapshot of overall market sentiment. An index is a statistical composite providing the performance of a market or a sector.

The Rydex Asset and Cash Flow Ratios are useful tools in evaluating market sentiment, and, as you can see, there is something for everybody when it comes to finding sentiment indications that agree with a point of view about the market.

The Bull/Bear Ratio shows what percentage of professionals are bullish versus what percentage are bearish, and as such is basically a distilled 'market sentiment' indicator.

On a more macroscopic basis, however, the VIX can be used as a simple indicator of market sentiment.

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The best-selling first edition of Volume and Open Interest has become for many traders the definitive work on how market sentiment is reflected through daily analysis of volume and open interest indicators.

The difference between a crash and a correction is partly a matter of extent, but also of market sentiment and behaviour in its wake. A correction is an interruption of the general trend of the market, which resumes after the correction.

Bull Bear Ratio: The Investor's Intelligence market sentiment indicator which shows the relationship between bullish and bearish advisors.

Find out how this figure can be a real eye-opener on market sentiment of a given stock. Short Interest: What It Tells Us
Have you ever correctly predicted a stock's decline or wondered how to be profitable in a bear market?

There comes a point where you will recognize market sentiment without even identifying a specific candlestick pattern.

But market sentiment over those years was a historical anomaly. The annual dividend payout from stocks reached its lowest level ever: less than half the previous record. The P/E ratio reached its highest level ever: double the previous record.

Short Interest
A technical analysis of market sentiment, calculated by dividing the total shares sold short of a stock by its average daily trading volume.

An adjustment to price not based on market sentiment but technical factors such as volume and charting.
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The Put/Call ratio (P/C) was developed by Martin Zweig to determine the general market sentiment and expectations. It is a ratio of the number of calls and puts traded on the Chicago Board Options Exchange (CBOE).

But moreover, when taking a position on the market, your exposure has to be consistent with your feeling of the market sentiment, the trading time frame you defined and your financial capacities, that's what we call trading forex with a strategy .

The nature of market psychology suggests that any given trend may be more indicative of market sentiment than of fundamental gains or losses in the value of stocks.
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The DeM indicator is an oscillator (with a range between -100 to 100) designed to identify new buying and selling opportunities. It tracks the market sentiment of a stock or commodity by comparing the current and previous price of an asset, ...

... Miners to become more not less profitable. So why dump Gold Stocks? The answer lies in market sentiment. It's called a panic because ...
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Technical Correction
An adjustment to price not based on market sentiment but technical factors such as volume and charting.

Due to the oil price increases since 2003 and speculation, energy markets are being reviewed and by 2008 several conferences were organised to address the energy market sentiments of petroleum importing nations.

These candlestick charts have a number of candlestick patterns which when appear on the chart give an important signal about the market sentiment.

TICK INDICATOR A market indicator based on the number of stocks whose last trade was an uptick or a downtick. Used as an indicator of market sentiment or psychology to try to predict the market's trend.

These funds essentially just invest in the opposite direction of whatever the most common market sentiment is.

"PtE" is the ratio of the market price of a firm's common stock to its current (or predicted) earnings per share. A high (low) PtE ratio is often an indicator of market sentiment in the continued growth (decline) of a firm's earnings.
stock price
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Because forex is an over-the-counter (OTC) market, it can be difficult to see an aggregated view of total orders and positions. Market and momentum market oscillators provide additional insight into market sentiment.
Stochastic Oscillator ...

trading is gaining popularity as a powerful method to increase returns--and potentially lower risks--by profiting from short-term price moves. The Master Swing Trader explains how traders can use technical analysis, charting, and market sentiment to ...

See also: Sentiment, Trading, Stock, Market, Signal