Identify Overbought and Oversold Conditions
Our Sentiment Table has a primary and secondary function. Its primary function is to identify overbought and oversold market conditions. It does this on a near term, mid term, and longer term basis, but the most actionable observation stems from near term overbought and oversold indicators.
Naturally, overbought, and oversold conditions produce contrarian indicators. The objective is to identify when the market has fallen too much and it is poised to bounce back, or when the market has increased too much and it is poised to reverse lower over a near term period of time.
Therefore, our Sentiment Table can be construed as a contrarian indicator.
Fun Fact: In 2015 our Sentiment Table was used by a money manager to produce the 5th best performing strategy in the world according to Hedgeco.
Our Sentiment Table has been used for almost two decades to provide trading opportunities and timing indicators for the broader market, which produces actionable strategies for index ETF's, but our Sentiment Table can also be used to identify the stocks that are bucking the trend.
For example, if almost all stocks are near term weak and only a couple are near term strong we could look at the near term strong list and quickly identify which stocks are bucking the trend.
Our Sentiment Table is updated every day.
Instructions on how to use it are available on our Sentiment Table page on our members website.
Stock Traders Daily offers macro and market analysis, strategies and models, and timing tools.
FOMC analysis, Evitar Corte, Global Liquidity Reports, Investment Rate Model (Measures NATURAL asset demand years into the future).
We offer a combined analysis of the SPX, NDX, DJIA, and RUT using near term, midterm, and longer term charts to define opportunity.
We offer pivot points for Index ETFs such as SPY, QQQ, DIA, and IWM, in addition to all stocks, with trading plans updated in real time.