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Technology Stocks : AUTOHOME, Inc
ATHM 20.90+1.1%Feb 6 9:30 AM EST

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To: Mooster who wrote (20818)4/13/2000 11:39:00 AM
From: ahhaha  Read Replies (1) of 29970
 
This is wrong. Sentiment has no force. It has never bought or sold 1 share of stock. The assessment of sentiment is always after the fact of transactions because sentiment comes from price action. You are saying indirectly that price predicts price. This is a popular public view which is completely specious. They call it "momentum". Many people transact because they assess that sentiment says they should, but the same sentiment causes the reverse transaction among others. The net is zero.

When is the best time to short? When sentiment is extremely negative, not when it's extremely positive. This is so contrary to the popular view that you should start listening with all three ears. You don't try to go short at the top. You go short when the down side is clearly in position and sentiment is negative. Why? Going short is necessarily a trading action. You want to get in and get a good return in a short time. That occurs near the bottom. Around the top price hangs up and usually gets you to cover at a loss. Around the bottom price hangs around and lets you out easily by giving you plenty of chances.

In any case it's the glass is half empty and/or half full conundrum. Sentiment won't tell you any more than price.
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