Trend Sentiment

Trend Sentiment

COURSE

Trend Sentiment

Learn how to determine if the market is bullish or bearish by analyzing other financial markets and sentiment indicators.

The U.S. stock market does not operate in a financial vacuum. It is impacted by the much larger currency, bond and commodity markets, whose reach extends around the globe. Knowing how these markets are behaving can give you a glimpse into the mindset of international investors and whether institutional money is likely to be flowing into, or out of, the stock market. We'll also learn about market sentiment indicators -- the tools traders use to read the "tells" of the other traders on Wall Street.

In this course, you will learn:

  • How to understand intermarket analysis, including correlations and the business cycle
  • How to use the “Market Fear Index”, or the VIX

Once you have completed this course and implemented the concepts, you will:

  • Use global market indicators to inform your trade entries and exist
  • Understand how to make the VIX a useful tool for you in your trading decisions

More Information

Difficulty Level:Advanced
Modules:3
Lessons:13

Course Syllabus
Trend Sentiment

Module 1Intermarket Analysis
The U.S. stock market does not operate in a financial vacuum. It is impacted by the much larger currency, bond and commodity markets, whose reach extends around the globe. Knowing how these markets are behaving can give you a glimpse into the mindset of international investors and whether institutional money is likely to be flowing into, or out of, the stock market.
Lesson 1Reading: Confirming the Trend — Intermarket Analysis 
Lesson 2Video – Part 1: Intermarket Analysis; Correlations (13:19) 
Lesson 3Video – Part 2: Intermarket Analysis; The Business Cycle (11:31) 
Lesson 4Quiz: Intermarket Analysis 
Lesson 5Assignment: Confirming the Trend with Intermarket Analysis 
Module 2Market Sentiment Indicators
If you talk to any successful poker player, he will tell you that the difference between winning and losing is your ability to play the other players at the table. The same holds true in the stock market. You want to be able to identify the other players tells and use those tells against them. Market sentiment indicators are the tools traders use to read the tells of the other traders on Wall Street.
Lesson 1Reading: The Market Fear Index 
Lesson 2Video: Confirming the Trend with Market Sentiment Indicators (17:36) 
Lesson 3Quiz: The Market Fear Index 
Lesson 4Assignment: Analyze the VIX 
Module 3Intra-Market Analysis
All too often, traders fall into the trap of viewing the stock market as one great whole instead of a collection of distinct sectors and industry groups. However, if you can avoid this trap yourself, you can learn a lot about the strength of the current market trend by comparing which sectors are doing well and which are not.
Lesson 1Reading: Confirming the Trend with Intra-Market Analysis 
Lesson 2Video: Intra-Market Analysis (7:18) 
Lesson 3Assignment: Confirming the Trend Using Intra-Market Analysis 
Lesson 4Quiz: Intra-Market Analysis