Basic Techniques  |  NOV 2003

Bullish Consensus by David Penn

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 understood that.” —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.

by David Penn