Posts filed under “Technical Analysis”
Am I seeing this correctly? Has Barron’s finally
thrown in the towel on the Citibank Panic Euphoria measure? We have voiced our criticism of this indicator (repeatedly), which has been pinned in the Panic range for the past year or so.
For those who want a major firm substitute, allow me to suggest the following:
James Montier of Dresdner Kleinwort Wasserstein Fear/Greed indicator
DrKW Fear and Greed Index
click for larger graph
Source: Thoughts from the Frontline
Each of their sentiment readings actually is perceptive, swings to and fro, and has a degree of anticipatory prescience . . .
UPDATE: March 25, 2006, 8:52 am
Doh! Its in the print edition, but not the online version.
The Citibank Market Sentiment measure lives — and its moved into the neutral zone between panic and euphoria.
Never mind . . .
In the past, I have warned against relying on the magazine cover indicator for specific companies. There are some very specific caveats on this here. The reason for this is that, in my experience, the Cover Indicator is useful for determining when large social phenomena are reaching an emotional crescendo. Oftentimes, emotions take over at…Read More