iCharts Discussions

[vinay28]

it's a pity that frustrations are coming out more ferequently on icharts forum.

[SwingTrader]

Guys.....please stop this. No more arguments please.

[chandrujimrc]

Hi frienda,

Mkt is going as per it's own direction but this discussion is going in some other irrelevent direction.


chandru.

[SwingTrader]

My comments are on the chart posted below.

[psalm]

This chart shows another dimension of the market....Thanks for providing more insights.....

Regards,

Sam

[nsinojia]

long term market sentiment generated by stability of government., its policies and local participation of investors., as of today government is not stable., policies invite foreign liquidity, and indian mindset cautious to invest in stock market ., but prefer investment in asset class safe sectors., my experience and overall sum up says indian market will be volatile in the year 2012 ., to go up only., thanks for your chart one more thing social economic of india has changed a lot thanks to educated people ., internet and awareness and domestic consumtion and working(earning) heads per indian family since last decade. we indian top world by 48% population in age group of 25 to 45 % thanks onceagain for your chart

[ajayhkaul]

thanks for the update ST

[maddyprincess]

Dear ST,

Since nifty broke the trend line, any update about long term sentiment ?

[SwingTrader]

[psalm]

Thnx again ST.....

[rvg]

Seems interesting.. ST.. thanks for providing the insight.

[SwingTrader]

NSE longterm sentiment as of 03.02.2012

Longterm sentiment is high at the moment thanks to the strong rally off the lows. Intermediate term sentiment is at 80% now, it means market is way overbought now, especially given the fact that longterm sentiment is still in negative territory. So do we start accumulating here for longterm? I have not started yet. I go ahead full steam only when longterm sentiment is in positive territory but I would start looking seriously and dabble a bit in good stocks once the resistance 5400 breaks. Market breaking above 5400 and staying above is the first true test. Next pullback is the key.

One interesting way one of my friend uses the sentiment chart (I have been sending him these updates since 2-3 years now). He is a position trader and uses this sentiment info for intermediate term trades. Here is what he does : when long term sentiment is in positive territory (bull market) he buys into any decline of the intermediate term sentiment indicator (red line) below 0 (on the chart these are Feb 2010 and May 2010 declines) and starts liquidating his longs when intermediate term sentiment is around +80 and also on technical criteria and when long term sentiment is in negative territory (bear market) he shorts into rise of intermediate term indicator above 0 (on the chart - Dec 2010 and Apr, Jul & Oct 2011 bear rallies). He liquidates these shorts once intermediate term sentiment hits -80% and also on technical criteria (whichever triggers first). Smart guy he took advantage of this recent huge rally while I am still looking for longterm trigger Of course, our trading/investing styles are totally different....that is one of the reasons but he is not complaining

[kiranr]

Hi ST,

Is it necessary that the long term indicator must fall below -80% for the following bull move to be strong? I am asking this because 2008-2009 was an extreme event and one that may not repeat as, collectively, the stocks fell and rose really fast.

[vinay28]

kiran, if you notice both indicators have reached at least -60%. so you have a choice. as far as I am concerned, the message is clear. it is time to start seling in short term.

[psalm]