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The Single Company Magazine Cover Indicator

Posted By Barry Ritholtz On March 20, 2006 @ 9:00 am In Apprenticed Investor,Psychology,Technical Analysis | Comments Disabled

In the past [1], I have warned against relying on the magazine cover indicator for specific companies. There are some very specific caveats on this here [2].

The reason for this is that, in my experience, the Cover Indicator [3] is useful for determining when large social phenomena are reaching an emotional crescendo. Oftentimes, emotions take over at the extremes, as things become either giddy or bleak.

A perfect example of why the Mag cover isn’t appropriate for individual companies is Apple. Check out this collage of 56 covers, as compiled by Kuo Design [4]:

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What Magazine Cover Indicator?
click for more covers

[4]

The CEO of Apple Computer and Pixar Animation Studio on the covers of magazines.
For the entire collection of 56 covers, go here [4].

So the key question for afficianados of the magazine cover indicator is simply this:  Which cover was your sell signal?

The collage above shows why the cover indicator is not really applicable to single companies . . .

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Source:
The Steve Jobs on Magazine Cover Page [4]
Kuo Design, 2/3/04-1/29/06

http://www.kuodesign.com/pineapple/coverme/index.html


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2006/03/the-single-company-magazine-cover-indicator/

URLs in this post:

[1] In the past: http://www.google.com/search?hl=en&lr=&c2coff=1&q=site%3Abigpicture.typepad.com+magazine+cover+indicator&btnG=Search

[2] very specific caveats on this here: http://bigpicture.typepad.com/comments/2005/02/uhoh_apple_on_t.html

[3] Cover Indicator: http://paul.kedrosky.com/archives/000995.html

[4] Kuo Design: http://www.kuodesign.com/pineapple/coverme/index.html

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