Ways to spot mass movement of sentiment

[fatowl]

It is useful to know when participants in a particular stock's market is going somewhere in unison. Why? It usually never lasts, and you can bet on opposing behavior in the near future. Contrarian trading/investing is based on this principle. With that in mind, here are some ways I can think of to spot mass-movement of market participants:

- extreme price movement up or down
- overtly bullish/bearish news stories on magazine covers and newspapers encouraging people to get on the bandwagon
- extreme highs or lows in the VIX.
- extreme highs or lows on a stock's implied volatility
- extreme highs or lows in the "small" or "non-reportable" trader positions from the Commitment of Traders

Any other interesting ways to spot major moves in market sentiment? I mean major moves not major shifts. The idea is to oppose a major move once you believe it has finished moving. The idea is not to bet on a major move before it happens.

 

[Tradesight]

I always follow the weekly sentiment survey from AAII. The most recent poll is very close to contrarian bearish. When the bulls get over 50% and the neutral and bearish reading both fall below 25% it's usually a signal that everyone is long enough to allow for a change in trend. Below are the most recent results for the week ending 5/22/2013.

Bulls: 49%, +10.5% on the week
Neutral: 29.5%, -2.7% on the week
Bears: 21.5%, -7.8% on the week

Anyone got anything else they follow?

 

[malaguti]

I generally just tend to look at the weekly charts, look for a failed high, or lower low. That's my only alert that something is shifting.

 

[Templar42]

I generally just tend to look at the weekly charts, look for a failed high, or lower low. That's my only alert that something is shifting.

Intraday, does anyone use relative volume?

 

[malaguti]

Intraday, does anyone use relative volume?

not me personally Templar, volume plays no part in my trading.
I'm sure lots will disagree on this point, but you only have to look at current market trends and understand where I'm coming from.

 

[MoneyRush]

It is useful to know when participants in a particular stock's market is going somewhere in unison. Why? It usually never lasts, and you can bet on opposing behavior in the near future. Contrarian trading/investing is based on this principle. With that in mind, here are some ways I can think of to spot mass-movement of market participants:

- extreme price movement up or down
- overtly bullish/bearish news stories on magazine covers and newspapers encouraging people to get on the bandwagon
- extreme highs or lows in the VIX.
- extreme highs or lows on a stock's implied volatility
- extreme highs or lows in the "small" or "non-reportable" trader positions from the Commitment of Traders

Any other interesting ways to spot major moves in market sentiment? I mean major moves not major shifts. The idea is to oppose a major move once you believe it has finished moving. The idea is not to bet on a major move before it happens.

Good post, catch like from me. Based on my experience there are more than 50 factors of sotck movement, but it is extreamelly hard to calculate them and to have time for trade