Replies to post #5275 on Strategy Central

[zelareka]

chico, can you post the website please? the link sentimentindicator.com did not work

[kenwong]

Little Chico: "Contrary Indicator" History

Would make sense from a contrarian perspective ... especially if there was a historical figure to refer to that indicates something to the effect, "using this as a contrarian indicator works 85% of the time".

However, what if you come across information that would seem to be contrarian information ... but IS accurate 85% of the time (i.e. is NOT a contrarian indicator)?

My point is that it would be good to have an accuracy percentage number to pin a concept to. That's the objective of the "Free Advisories" and "Top Gun" lists ... to generate these numbers to determine validity (note: it's still questionable as to whether or not if I'm rating the "Free Advisories" in a valid manner).

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Posted by: Little Chico
In reply to: kenwong who wrote msg# 5271 Date:5/23/2006 6:10:14 AM
Post #of 5288

Sentiment Indicator....

Ken,

Since sentiment is a "contrary indicator," I would interpret the sentimentindicator.com chart as technically bullish whenever it registers a pessimistic reading. Excessive pessimism always predicts a bullish turn. But how excessive does it have to be before the market responds?.... When it gets about two thirds up the column, or two thirds down (in the reverse situation) the market generally reacts. This, I have found, is quite reliable.

Chico