Sentiment, Sentiment, Sentiment = a major subject that is not only taught at Universities and defo not in the MBA program and defo not at ET or T2W.
But for the astute Duke of London, he makes goood use of this factor just based on what I already taught him:
At major market turns approaching, the investing/trading crowd is always on the wrong side of the market insistently and never see a turn coming and stay LONG and get crucified, petrified and frozen and can't exit, so scared they are. They die.
Reading the board at T2W and ET prepares the Duke for the turns when he can easily see that the vast majority are not only super bullish but that some are so bullish that its way over the top and have thrown caution to the wind and are cock sure the market will go to infinity. Then the Duke has fellows hitting on him telling him, "get in now man, you are a goddamn fool, you can't lose, easiest money int he world, its a boon for us traders"
The Duke feels terribly ALONE. Everybody seems to have thrown caution to the wind. But the Duke cannot join them. He learned this lesson from FIBO, so he puts the brakes on and puts on his thinking hat and recalls exactly what Fibo taught him and then he remembers that Fibo also said that his premiss also coincides with that of Warren Buffet ............
SELL when ther is euphoria and craazy complacency and no fear - SELL SELL SELL.
SENTIMENT STUDY & CALCULATION is a study that has never existed at T2W or ET. DEATH prevails in droves.
World economy is sleepwalking into a new financial crisis, warns Mervyn King | Economics | The Guardian
Past crashes spawned new thinking and reform but nothing has changed since 2008 banking meltdown, says former Bank of England boss
Reading this on my way home - is Mervyn right? Probably! Fibo, thank you for your boundless posting here, gives me a great deal of enjoyment!