Thanks for your comments, I certainly agree that using these sentiment indexes is probably not a good idea. I think the indexes would be more believable if the methodology was disclosed.
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Cetin, the problem is that 'the great credit contraction' has already started. Google, Apple, and Facebook are not relying much on borrowers and therefore are not good indicators of a credit contraction.
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At least they are modifying some mortgages. If they weren't, housing prices would be pushed down faster. It certainly won't solve the problem, but it will lessen the pain.
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You are right. If the underlying fundamentals change a lot, then the Oil / Natural Gas ratio would probably not be very useful.
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I certainly agree that using these sentiment indexes is probably not a good idea. I think the indexes would be more believable if the methodology was disclosed.
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Yes thats true for 35% moves of the ETF, but what if the index moves 35% in one day? 35% x 3= 105%.What will the ETF do then?
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