"The Market isn't acting the way it should."

In almost any financial market, in almost any conditions, you can bet that phrase is uttered thousands of times a day. 

In eight words, it encompasses the mystery and potential of investing’s most powerful force and inscrutable element: human psychology




Understanding how to accurately gauge and use crowd sentiment to identify buying and selling opportunities is often regarded as more art than science. The misperception is understandable. We believe it exists because sentiment analysis has been implemented with one or more of these three main flaws:

  • It doesn’t contain data that’s sufficiently detailed or historically extensive to
    find meaningful relative relationships among sentiment indicators.
  • It doesn’t adjust sentiment indicators for volatility and economic environment.
  • The analysis doesn’t adequately compare sentiment data across asset classes

In this white paper, we explain some of the key tenets of NDR’s approach to assessing market sentiment analysis and several of the most significant data-refinement techniques we use in our analysis.


Continue to Break the Code with NDR
Explore additional publications from Ned Davis Research that put our sentiment analysis into action.

 Ned's Insights 1  Neds Insights 2-2
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