Bullish Consensus by David Penn
This enduring sentiment indicator was designed specifically
for the futures markets.
“Paradox is one of the deepest and most important secrets
of life, and … irony is the punishment for not having
—James Dines, How Investors Can Make Money
Using Mass Psychology
During times of confusion in the markets, studies
of market sentiment tend to become popular.
This is probably unfortunate. It is the
absence of a clear, distinct trend that forces
uncertain market players to look away from
their indicators and trendlines, their oscillators,
and their cycles for something — anything — that can explain
why the markets are acting the way they are. For many traders,
a peek at what the smart money is doing is often an irresistible
salve against the confusion of a marketplace that seems incapable
of making up its mind.