Posts filed under “Psychology”

Chart of the Week: U Michigan Sentiment Index Gives Market Warning

"Such steep and widespread declines in confidence have
typically triggered recessions," though a recession is not
"pre-ordained,"
said Richard Curtin, the director of U Mich consumer
surveys. The drop paralleled the decline following Iraq’s invasion of Kuwait in
1990.

U Michigan Sentiment Index Gives Market Warning
click for larger chart
Sentiment_crash
Source: Robert McHugh

Some Traders find a correlation between consumer sentiment
and Dow Industrials’ price movements. Robert McHugh states that “often, the sentiment index and equity prices move
contemporaneously, so we do not benefit from foresight. On occasion, we do get
an early warning as the sentiment index leads prices.” We will see if this
recent drop presages another.


Random Items:

It’s Fourth and Long for Stocks

Gross: Short-term rates near peak

Pump panic, gold glee

Overcoming Market Panic (Brett Steenbarger)

Silicon Valley Apple Roundtable: The Next Generation

Katrina Burst More Than New Orleans’s Old Levees

The Flying Mobulas of the Sea of Cortez



Quote of the Day:

"Any activity becomes creative when
the doer cares about doing it right, or better."    
~John Updike

Category: Markets, Psychology, Retail

The difference between being rich and being wealthy

Category: Finance, Psychology

Quote of the Day

Category: Economy, Psychology

Why We Love Jeff Matthews

Category: Earnings, Psychology, Weblogs

Sometimes, There is No Pony

Category: Economy, Investing, Markets, Psychology, Trading

Delayed Onset: Some Historical Comparisons

Category: Investing, Markets, Psychology

9/11

Category: Psychology, War/Defense

The Disconnect and Economic Classes

Category: Economy, Psychology

DJIA 1966 – 1982

The previous chart reveals the long standing secular moves of the markets; What’s an investor to do during one of the long periods of weakness? One answer is to learn to be more nimble, and trade the cyclical markets. > Dow Jones Industrial Average, 1966 – 1982 click for larger chart data for chart courtesy…Read More

Category: Investing, Markets, Psychology, Technical Analysis

Katrina Lowers Year End Expectations

Category: Commodities, Economy, Investing, Markets, Psychology