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Hi, Is anyone here using this index (or anything similar) to gauge bullish/bearish sentiment? I am particularly curious if anyone has extended the application of the index from OEX options to ETFs or even individual stock options. "The Ansbacher Index is an indicator of the bullish or...

All clear now guys - 4% later Cramer posts he is positive on the rally... I would never use one sentiment signal in isolation, but Cramer once again demonstrates that when he unequivocally states the market can't rally, a tradable bottom is probably at hand. In fact, with this big rally...

It is an interesting poll, but it is really hard to have an edge extending beyond a week or so in this market. The sentiment-driven rally of yesterday and today has triggered sell (but not short) signals in my trading model, so I have taken all my trading longs off the table. I vote for no edge!

dtrader98, I took a quick look at your ALC thread and was very impressed with your research. Hopefully I will have something useful to add to that discussion. The reason I believe this is a standard 10% correction is based on Martin Zweig's market research. He believes, and it has been a...

I can't disagree with you poyayan, but I still like em for a trade. After we rally, and the collective mindset becomes "hey don't fight the fed", I will probably be flat US Equities. My contention is we don't crash lower from here as the current mindset is "the fed is impotent" and the vast...

You need to add a little pic of Ben Bernake in a helicopter dumping money over this chart :) The pressure is gonna stay on the dollar, but my contention is that increasingly accommodative monetary policy and gobs of liquidity is going to save the market, at least for a trade from these levels.

I'll give you some examples later to give you an idea of how the sentiment score works, but the most important idea is you want to be trading with the commercials and against the FXCM/FXtrade retail traders. LBR is Linda Bradford Raschke, turtle soup is a method of fading breakouts.

I see the same gnome; I don't have them all in my favor, but the Rydex indicators I referred to have been very accurate in the past in timing bottoms (more so than tops).

gnome, take a look at the % of rydex sectors with assets > 50 day MA...it has fallen from over 85% in late october to 12% now. The flows into bearish funds is hitting two standard deviations from normal - very rare (tempest,ursa,venture,arktos).

A currency pair has five sentiment modes in my model ranging from very positive to very negative with edgeless in the middle (and roughly 2/3s of all pairs are edgeless at any given time). It takes a long/short ratio of at least 1.5 (which would be at least 60% long/short to register a score...

I see the same things guys and it scares the hell out of me to be leveraged long in a market like this. However, having the hell scared out of me isn't something I can quantify and backtest. The same can be said for projections based on what I am hearing on CNBC regarding the death of the...

Ahh I see. I measure sentiment in a slightly different way, as I use it as a contrary indicator. Basically, I create a composite score of the COT commercials (smart money) and the FXCM/FXtrade long/short ratios (dumb money) and use this score as a filter to either trade or fade breakouts...

Fair enough, I am still getting acquainted with the ET boards. I was inspired to post my reaction to what I have been hearing in the news in regards to Bernake, our date with a recession and the death of the dollar, and how it all may not mean what people think in terms of the market from...

1. The market is not overvalued (as measured by the fed model), the yield curve is not inverted, and deflation isn't on the horizon. 2. Sentiment has gotten very, very negative as measured by Rydex flows, various sentiment polls, and ISEE call/put data (all of these very representative...

What do you mean by "sentiment" in this context? How do you measure it?

Mymini's post caught my eye and I wanted to contribute something I hope would be useful regarding the Rydex data and my favorite contrary indicator (Cramer) - I don't trade the S&P futures. I am, however, nearly at 2-1 leverage in my stock portfolio.

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Oh and even better than all that hard-data crap, just hitting now is Cramer saying its different this time - something about achilles heels and differences from the 1990 scenario - pfffft :)

Empee no disrespect but it feels like a bear market to me as well, but I realize my feel is genetically wired to screw me up when it comes to making money in the market. I much prefer dumb-money v. smart-money sentiment measures and hard data to keep the probability of success on my side...

Mymini I like your call on the rally this week, and I couldn't agree more that Goldman is trying to shake a tree that has already lost its apples (the % of Rydex sector funds with assets > 50 day average is at its lowest reading ever...so again real value added there GS congrats). Good luck!