Introducing the Institution Sentiment Index!

There are plenty of indices out there measuring investor sentiments but not one that measures institutional sentiments! With financial institutions becoming bigger and stronger, an indication of their sentiments in regards to the market is becoming extremely important.

I am introducing my proprietory institution sentiment index to the Option Trader's HQ for the first time. I created this index some time ago for use on my hedge fund. This is an index that measures the amount of optimism or pessimism amongst financial institutions and represents it graphically.

In general, a high level of institutional optimism generally precedes a bull market and a high level of institutional pessimism generally precede a bear market. Although this index do not precisely pin point turning points in the market, it does tell me when to keep a closer look at my positions and the market.

Check It Out Now At The Option Trader's HQ!