Discuss Market Comments 03/02/11

Indices near do or die - Stocks opened solidly higher Tuesday morning, but as the price of oil started to rise, the stock indices headed the other way. The Dow dropped 168-points...

Market Commentary for 3/02/11

Current Daily Market Commentary

 

[Cactus]

OK, dumb question but I'm just learning. Who is the Smart Money vs. Dumb Money. I understand that the Sentiment Survey is us, but who are these Smart/Dumb money.

 

[tsptalk]

Hi Cactus -

Almost everybody is the "dumb money" but the OEX put call options traders tends to attract more sophisticated traders. It is just an observation that they tend to do the opposite of the dumb money and they are usually more correct, where as the dumb money seems to be consistantly wrong at market tops and bottoms.

 

[Cactus]

Tom;

Thanks for the feed back. That makes more sense.