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“We’re Gonna Get Those Bastards!” | Jared Dillian

Hidden Forces

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The Importance of Sentiment in Trading

At the highs when people are the most bullish, that is the point in time in which the fundamentals look the best. So if somebody comes to you and says, look, here's the bear case. Everybody's too bullish. We're going to trade off because of sentiment. People say, no, it's impossible because the fundamentals are amazing. And what happens is, is that it'll sell off first, and then the fundamentals will resolve later, right? So sentiment leads everything.

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