I wonder if ET (= Baron) could someday create a running indicator of trader's sentiments? I'm envisioning a running poll in which each ET member can vote each day on sentiment. The 24-hour rolling numerical average value from the poll would appear on the home page with a link to a "Details" page that shows a bar chart of frequency of responses and a line chart of the historical values.
I see two possible alternatives for the definition of sentiment. First is an ease-of-trading or profitability indicator that runs from "extremely unprofitable" to "extremely profitable" over a -10 to 10. The second alternative is a short-term direction indicator that runs from "extremely bearish" to "extremely bullish" over a -10 to 10 scale. (It could also be a 0 to 10 scale, -5 to 5, -100 to 100, or whatever)
Two factors made me think of this. First, it seems that trading has gotten harder of late, but this evidence is largely anecdotal. Second, AAII (American Association of Independent Investors) publishes an sentiment index that gets occasional press coverage. An ET Sentiment Index might provide additional publicity for ET and lead to greater respect and clout.
The exact rules would need to further developed. I realize that this is a nontrivial project so it may not be feasible or worth the effort. Finally, it is a separate issue on whether the poll would be a leading indicator or contrarian indicator of future price action.
Cheers to all,
Traden4Alpha
I see two possible alternatives for the definition of sentiment. First is an ease-of-trading or profitability indicator that runs from "extremely unprofitable" to "extremely profitable" over a -10 to 10. The second alternative is a short-term direction indicator that runs from "extremely bearish" to "extremely bullish" over a -10 to 10 scale. (It could also be a 0 to 10 scale, -5 to 5, -100 to 100, or whatever)
Two factors made me think of this. First, it seems that trading has gotten harder of late, but this evidence is largely anecdotal. Second, AAII (American Association of Independent Investors) publishes an sentiment index that gets occasional press coverage. An ET Sentiment Index might provide additional publicity for ET and lead to greater respect and clout.
The exact rules would need to further developed. I realize that this is a nontrivial project so it may not be feasible or worth the effort. Finally, it is a separate issue on whether the poll would be a leading indicator or contrarian indicator of future price action.
Cheers to all,
Traden4Alpha
