Blog Traffic as a Contrary Market Indicator

Hey folks, I have to let you know about a new trading tool I have.

That bullish reversal call on CNBC on January 23rd? In addition to the other indicators I track, I have another "special" sentiment reading. Its become my secret weapon.

What is it?


As a group, it seems that traffic to blogsites can be tracked as a contrary indicators — especially when the market is under pressure.

Note that the selloff in August, and then the more recent whackage in January, each created a major traffic spike — which led to a bottom, and a healthy bounce.


Sitemeter traffic to TBP as of January 30, 2008


Now, maybe the content here suddenly got much better. It could be that I suddenly became a whole lot more insightful, or perhaps my  prose more poetic — but I doubt it.

What most likely occurred was the market turmoil generated an influx of new visitors. 

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