Contrarian Indicators - Overview

Measure the overall bullish or bearish attitude among different groups of investors

Contrarian market indicators attempt to measure the overall bullish or bearish attitude towards the market among traders and investors (market sentiment) or they track the investing behavior of Smart Money and Dumb Money. Those indicators do lead or confirm price actions. According to accepted valuation theory, stock prices reflect collective investor expectations of future developments and risk.

But in reality, most investors spend much time trying to understand a stock's current fundamentals and too little time gauging the expectations embedded in its price. A contrarian investor or the behavioral finance followers believe that when everybody is fully invested there will be no further purchasing power. At this point, the market is at a peak. On the other hand, when people predict a downturn, they have already sold out, at which point the market can only go up.

Normally when the market hits a new low, Smart Money will buy and Dumb Money will sell. Therefore following the market sentiment or the behavior of Smart- and Dumb Money will give additional edge of information about the general market condition.

Our Contrarian Indicators area contain the following sections and indicators:

Smart Money Indicators	Dumb Money Indicators	Sentiment Indicators
Smart Money Flow Index Bottom Indicator Market Timer Index Program Trading GF Timing Indicator GF Large Block Index GF Fear Indicator 15 Most Active Stocks Avg. Price Nyse Most Actives Cycles	GF Dumb Money Indicator ISEE Equity Options Call/Put Ratio GF Trading Index Odd Lot Purchases/Sales Ratio Odd Lot Purchases/Nyse Volume Odd Lot Differential Index Rydex Nova/Ursa Ratio NYSE Short Interest Ratio WSC Capitulation Index	Investors Sentiment Volatility Index