Market Sentiment Stocks

Discussion in 'Trading' started by nwbprop, Dec 30, 2003.

  1. While I was reading the interview with Mark Weinstein in Market Wizards, I noticed he mentions individual stocks and their personalities(connections) with the overall market. His example was IBM and GM will usually rally before a major market bottom and Fail to rally before a major market top.

    My plan to learn this process is to watch the market stocks for the Nasdaq and NYSE in relation too the minis. I am sure after I gain some experience, there will be some stocks that always lead the rally and selloff in the overall market.

    I would appreciate any suggestions.

  2. Sentiment stocks will change ... for a couple days MCD was important as a barometer to market reaction re: BSE.

    CRDN is a good (inverse) gauge re: progress on the ground in Iraq. Take a look at it's reaction to the capture of Saddam to get an idea.

    MSFT seems consistently important for me - note today it foretold the continued weakeness in the afternoon. Sure it is a huge-cap and is defacto important. More than that, however, it does seem to lead the market on a fairly regular basis.