October 19, 2022 Mid-Week Market Update
Another look at magazine covers
In this past Weekend Market Review, I mentioned The Magazine Cover indicator.
It's one of those funny Wall St. anecdotes that maybe doesn't have enough empirical data to really be a signal. But at the same time is interesting enough that it’s hard to dismiss.
Many have studied and written about it. I'll leave the deep dive for them. But the gist of this theory is that magazine covers can represent the collective mood of market participants. And since the process responsible for getting these stories and images onto the magazine covers is rather lengthy, the message is often wrong, or at least late.
Today, on Twitter I shared some of the “deep dives” I’ve found. In lieu of more market charts today, I invite you to take a look.
Click here to open the thread: 👇
Market psychology fascinates me. I hope you enjoy this type of thing as much as I do.
I’d love to hear about it.
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