Behavioral Trading: Methods for Measuring Investor Confidence, Expectations, and Market Trends
March 13, 2004
Alan Greenspan, Chairman of the Federal Reserve Board, says about confidence, "History tells us that sharp reversals in confidence happen abruptly, most often with little advance notice this type of behavior has characterized human interaction with little appreciable difference over the generations' the price pattern remains the same."
Robert Rubin, former U.S. Treasury Secretary, says, "Everything I have experienced suggests that, at core, economic conditions and markets are grounded in the human psyche. That is, confidence, or the lack thereof, profoundly affects markets and economies. Confidence, in turn, has throughout the history of markets and economies, tended to swing from excesses in one direction to excesses in the other."
Have you ever wondered to what extent investor confidence and expectations impact stock market prices? In Behavioral Trading, stock market contrarian, Woody Dorsey, for the first time gives readers insight into his highly profitable proprietary market diagnosis techniques. These are often described as market expectations theory, behavioral finance, or, most commonly, contrary opinion analysis.
Woody Dorsey began publishing market commentary in 1985.
His innovations in Market Sentiment Interpretation, Trend Duration Analysis, and Transient Investment Themes are part of a new system called Triunity Theory. This behavioral approach led him to identify major conceptual extremes, such as "Fantasia", the deflationary climax in October 1998 and "E*Greed", the dotcom extreme in early 2000. Dorsey lives in Vermont.