How It Works
WhisperNumber.com conducts weekly surveys to its registered userbase of individual investors. We've been conducting these surveys since 2002. Each survey, on average, receives over 1,100 responses from our participants.
The premise of each question? How confident are you about the future of the market?
This question is asked of the general market (Dow, S&P), eleven market sectors, twelve Exchange Traded Fund Indices (ETF's), ten Global Regions, and three Bonds markets.
Going Opposite the 'Herd'
We look to see where the 'herd' is headed, and take the opposite route. The 'herd' (in this case actual investors) are usually chasing a market higher or lower. In some cases chasing the market does yield positive results, but in most cases chasing a market ends up in losses. Analysis of our data concluded we were taking a snapshot of sentiment that indicated the opposite of actual market moves. Thus, it required contrarian interpretation in order to be accurate.
The responses collected from these surveys are presented in the Market Confidence Report. The responses are percentage based but also include a simple overbought, oversold, or neutral tag, along with basic commentary. An over-confident or high percentage result indicates an overbought market where weakness can be expected. An under-confident or low percentage result indicates an oversold market where strength can be expected.
To determine the oversold, overbought, and neutral ranges, we've analyzed the past 52 weeks high and low confidence readings for a given market, with an analysis of historical price movement to determine cut off points.
Stand Alone or Confirmation
The report can be used as a 'stand alone directive' or as 'position confirmation'. 'Stand alone' simply means using the oversold or overbought readings to make trades without any other influence or information being taken into consideration. 'Confirmation' means using the information in conjunction with one or two other reports/services, comparing the data, and seeing where the overlap or similar market conditions exist. (We use oversold and overbought, another service may simply use buy and sell, or long and short.)
Just one anticipated market reading, just one early buy of an impending market move while everyone else stays on the sidelines, or a well-timed short sell, will pay for your subscription many times over. Subscribe to WhisperNumber's Market Confidence Report today!