Totally Un-Scientific Sentiment Analysis

• Posted by Greg Harmon
• on January 16th, 2014

Bullish sentiment in the market place has been measured over 55% for some 8 weeks in a row. This would appear to be strongly bullish right? I say that is wrong and my assessment comes from the totally unscientific analysis of twitter and Stocktwits streams. The data:

This is not how bullish traders react. It is also a data point that shows why it is more important to follow the price action than to blindly follow any other indicator. Sentiment and other indicators can confirm price action, but it is hard to pick a turning point using them alone.

Don’t forget to download A Longer Perspective, my take on 12 broad markets for 2014 and beyond, for the price of a latte.
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