With the drop in the Mexican peso over the past month, the iShares Mexico ETF, EWW, has sold off and has triggered an interesting setup.The fund is showing up on the ETF Sentiment & Trend screen as showing pessimism despite being in an uptrend (above its 200-day average).The one-day Optimism ...
Sundial Capital Research is an independent investment research firm dedicated to the application of mass psychology to the financial markets. Sundial publishes the SentimenTrader.com website.
Our focus is not market timing per se, but rather risk management. That may be a distinction without a difference, but it's how we approach the markets. We study signs that suggest it is time to raise or lower market exposure as a function of risk relative to probable reward. It is all about risk-adjusted expectations given existing evidence.