Stocks & Commodities V. 23:3 (50-54): Market Sentiment Extremes by John Jagerson & S. Wade Hansen

Stocks & Commodities V. 23:3 (50-54): Market Sentiment Extremes by John Jagerson & S. Wade Hansen
Item# \V23\C03\063JAG.pdf
$3.95
Availability: In Stock

Product Description

Stocks & Commodities V. 23:3 (50-54): Market Sentiment Extremes by John Jagerson & S. Wade Hansen

The ability to pick up on and properly interpret minute signals in the market dictates the distinction between success and failure. Here’s how implied volatility can help.

Small vibrations — a large investor begins buying calls. Virtually imperceptible movements — a hedge fund manager raises his stop-loss levels. These are telltale signs a change is coming. The ability to pick up on and properly interpret these minute signals means the difference between success and failure in the marketplace. Bulls and bears alike push market sentiment to extremes. Whether the imbalance is positive or negative, the market must eventually turn and correct itself. But before it does, it will often announce its intentions through implied volatility.

IMPLIED VOLATILITY

Implied volatility is an estimate of future price changes. While historical volatility is an easily quantifiable measurement of past price movement, implied volatility is an emotionally based guess determined by investors as they buy and sell options. Implied volatility, or investor fear, increases as investors become bearish toward the market and decreases as investors become more bullish. As subjective as implied volatility may be, however, it is an extremely accurate measurement of the posture of those who drive the market.




FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.




Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order