Investing tool: interesting sentiment indicator for overbought/oversold


Email a Friend

Check out what Dr. Richard Peterson is doing at MarketPsych.

He’s done perhaps the deepest research into different sentiment indicators in the stock market. He’s got so many emotions to describe the activity in social media that it sounds almost like he’s anthropomorphized the markets and market chatter.

Here’s one tool I think is particularly cool. His firm is out culling for measures of positivity. He’s then plotted that measure over recent stock returns to get a measure of overbought and oversold, depending where the stocks plot out. Almost like crowdsourcing investment ideas — but really doing it.

This chart updates every morning with new stock picks but the idea here is that you’re looking for divergence in sentiment — where sentiment breaks off from actual stock performance. You’re going to want to look in the upper right and lower left “quadrants” of the graph.


0 comments on “Investing tool: interesting sentiment indicator for overbought/oversold”


The Daily Tearsheet: A day in the life of Kristen Anderson, the CEO and co-founder of Catch

  • In this daily, we've got a day in the life of Kristen Anderson, the CEO and co-founder of Catch
  • And in other news, NFTs continue to spread.
Rivka Abramson | May 03, 2022
Events, Uncategorized

New speakers announced for Tearsheet’s Resilience Conference

  • The Resilience Conference will celebrate the people, teams and companies successfully navigating through this crisis.
  • 3 new speakers have just been announced.
Tearsheet Editors | June 25, 2020
The Customer Effect, Uncategorized

Inside Yielders, the UK’s first regulatory compliant Islamic crowdfunding platform

  • Yielders, an equity-based crowdfunding platform for real estate, is the first Shariah-compliant financial technology company to get regulatory approval in the U.K.
  • The platform's user base is 35 percent non-Muslim, some of whom may be attracted to the ethical investing principles.
Suman Bhattacharyya | May 18, 2017
Sponsored, Uncategorized

FinTech is changing your life, and you don’t even know it

Brandeis University | May 01, 2017

FinTech Week: By the numbers

  • Empire Startups' inaugural FinTech Week begins today in New York
  • In preparation for 25 forthcoming events over four days, here's a breakdown by the numbers.
Tanaya Macheel | April 24, 2017
More Articles