My cyber-friend CS, also known as Chairman MaoXian, is a US citizen working in China. The chairman was a sentiment mentor for me nearly a decade ago. He has found a way to tally what we all know as major information media market sentiment swings. The Time Magazine cover sentiment peak (or nadir) was well known to older market wizards, but the chairman has moved it onto new and much more impressive grounds.
The beauty of the chairman's method for those of us using market sentiment data or polling is that it gives a totally new window on market mood swings
MaoXian's 2 February 2006 publication at his blogsite http://www.maoxian.com/ finds that sentiment his way was at a bullish peak at year's end. This fits hand in glove with several my own indicators in the last few days of December.
Market tops in stocks are processes, not normally spikes, unlike those in commodities or interest rates. This means that various extreme measurements top out at different times, just as sectors and inividual stocks do. As I said the other day, one has to think of them as weather forecasts and not traffic signals.
Another reason to read the chairman's blog is for his stock picks. He is a child of the new media era, and his search and analytical skills distill a lot of the otherwise lost time of unfocused internet cruising when looking for good investment ideas.
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