Here is a chart of long client sentiment (the orange line) versus market daily close (the blue line) for the S&P500 Index over the past 4 months:
There does appear to be a correlation, as the market moves up client long positions moves down – clients are moving from long to short positions as the market goes up.
Then at the peak (early September) client positions were long just before the market started dropping.
As the market moved down (i.e. for the past month) clients stayed long.
This example shows that client sentiment data can be used to provide trading signals, especially at “turning points” in sentiment. Obviously this would need to be tested against different markets but it is definitely a useful tool when looking for trading opportunities.
There are 8 built-in volatile Excel formulas, and it is worth being aware that using these in your spreadsheet could have unintended consequences:
INFO (depending on its arguments)
CELL (depending on its arguments)
SUMIF (depending on its arguments)
The solution was simple, replace the TODAY() function with a string value of the current date. This could be either hardcoded into the formula or better still entered into a cell and referenced from the formula.
So, if you every notice your spreadsheet starting to slow-down or start doing unnecessary calculations then look out for volatile functions.