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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (37104)	8/29/2012 1:37:26 PM
From: Challo Jeregy	Read Replies (2) \| Respond to of 218856

What the Drudge Report Can Tell You About the Stock Market Last year Bespoke Investment Group began tracking the occasions when financial stories "cross over" to become mainstream news. Using one of the most widely visited general news/political websites, DrudgeReport.com as the barometer, Bespoke found a strong correlation between the number of financial stories that ran as the top headline and the condition of the stock market. Co-Founder Paul Hickey explains the Drudge Headline Indicator in the above video clip. Hickey points out that the first significant peak, 21 days out of 50, was hit on February 27, 2009; just ten days before the S&P 500's bear market bottom on March 9. Last August during the debt ceiling debate and U.S. credit rating downgrade, the indicator broke to a new high — 22 of 50 days. Following that peak, the market bottomed. So where do we stand today? Bespoke's Drudge indicator hit an all-time high in June with 24 of 50 days running financial stories as leading headlines. This is when Europe re-emerged and the market hit summer lows. Since then the S&P has rallied 11%. "What the takeaway is, is that once Drudge is talking about it [a financial story], and everyone is talking about it, then the market has digested it," says Hickey. So what we have is a classic contrary indicator. When Drudge financial headlines rise, the market is at or near bottom. . . . . more finance.yahoo.com