Sentiment Internal Indicators: Winning Swing & Position Trading is one of many educational DVDs by a division of the Pristine Capital Holdings. The firm was established in 1994, has over 60,000 subscribes, and provides online educational & training products at Pristine.com.
What Capra Does
Trader & author Greg Capra describes Sentiment and the role it plays in trading. For example, market sentiment indicators can reinforce the trend in price, thus allowing a trader to hold onto their position and trade with the trend. Sentiment indicators can be also signal extreme sentiment, in which case trader may consider: profit-taking, close positions altogether, and/or prepare to open counter-trend positions.
How He Does ItCapra describes three specific Sentiment Indicators:
- The VIX (he also broadly touches on VXN)
- PUT-CALL Ratio (he describes equity, index and OEX ratios)
- Sentiment Surveys (The Market Vane Survey, The Investors Intelligence Survey, and The American Association of Individual Investors Survey)
Capra gives good advice for any trader. Having said that, the level of detail is better suited for novice or intermediate traders, not advanced or professional traders. While it is true that you could find a lot this material scattered at various free internet sites, what Capra does is save you the time, effort, and energy in researching, and provides you a complete and easy to follow discussion about the role of sentiment indicators, and a solid understanding of how to use the three major sentiment indicators (along with their limitations).
PROS: Capra successfully balances the level of detail in his analysis. This is no easy task considering his discussing some abstract topics such as the VIX and PUT-CALL Ratios. The ability to cover these detailed concepts in easy to follow manner is enough reason to get the DVD.
CONS: There truly are not many cons with this DVD, other than the fact that the material covered is geared toward the novice/intermediate trader. But that’s a decision regarding the intended audience of the product, not truly a “con”. The only fault I could find (and admittingly its purely cosmetic) has to do with many of the charts presented during the DVD. In an attempt to cover various indicators, there is too much material crammed into a single power point presentation, making following the DVD difficult (keep the remote control handy, you’ll be pressing the pause button often). But that’s not a deal-breaker, for an otherwise solid product.