STOCK MARKET SENTIMENT TURNS VERY POSITIVE IN THE FACE OF DARK VIRUS DAYS AHEAD
To gain an edge, this is what you need to know today.
Sentiment Is Important
Please click here for a chart of Nasdaq 100 ETF (QQQ).
Note the following:
- The chart shows that sentiment has turned very positive.
- Sentiment is important and all prudent investors should pay attention to it.
- When sentiment turns very positive, not only momo crowd becomes more aggressive, the FOMO (fear of missing out) crowd jumps in.
- The most important use of sentiment is that it is a contrary indicator at the extremes. In plain English, this means that when sentiment turns extremely positive, it is a sell signal.
November 13, 2020