from the publisher:
Alan Greenspan, Chairman of the Federal Reserve Board, says about confidence, "History tells us that sharp reversals in confidence happen abruptly, most often with little advance notice . . . this type of behavior has characterized human interaction with little appreciable difference over the generations . . .the price pattern remains the same."
Robert Rubin, former U.S. Treasury Secretary, says, "Everything I have experienced suggests that, at core, economic conditions and markets are grounded in the human psyche. That is, confidence, or the lack thereof, profoundly affects markets and economies. Confidence, in turn, has throughout the history of markets and economies, tended to swing from excesses in one direction to excesses in the other."
Have you ever wondered to what extent investor confidence and expectations impact stock market prices? In Behavioral Trading, stock market contrarian, Woody Dorsey, for the first time gives readers insight into his highly profitable proprietary market diagnosis techniques. These are often described as market expectations theory, behavioral finance, or most commonly contrary opinion analysis.
Market Semiotics, both the name of Dorsey’s company and his technique, is a research philosophy based on the logic of behavioral finance. In an illuminating and amusing fashion, this book offers an original and disciplined perspective that delivers precise forecasts of the market.
"We should all behave as well as Woody Dorsey writes. Read him – even the puns – and profit." -Jim Grant, Grant’s Interest Rate ObserverWoody Dorsey began publishing market commentary in 1985. His innovations in Market Sentiment Interpretation, Trend Duration Analysis, and Transient Investment Themes are part of a new system called Triunity Theory. This behavioral approach led him to identify major conceptual extremes, such as “Fantasia,” the deflationary climax in October 1998 and the “E*Greed,” the dotcom extreme in early 2000. Dorsey lives in Vermont.
"Woody Dorsey offers a unique insight into the workings of financial markets viewed through the dual lens of cognitive psychology and economics. Mr. Dorsey debunks the tenets of rational expectations theory be evoking the oftentimes irrational vicissitudes of human sentiment. Triunity Theory is developed in the context of the expanding field of behavioral finance. Mr. Dorsey punctuates his analysis with judicious use of epigrams and personal anecdotes, which makes for a stimulating read indeed." -John Porter, Managing Director, Global Portfolios and Economic Research, Barclays Capital
"There aren’t many analysts in the world worth following. Woody Dorsey is an exception. His methods of analysis kept you on the right side of the markets at both major and intermediate turning points over the years. I would not like to be on the other side of a trade with Woody Dorsey." -Felix Zulauf, President, Zulauf Asset Management