The ‘magazine cover indicator’ is the belief that by the time an instrument reaches the front page of a major magazine cover it is a contrarian indicator. So, if the front page of the magazine speaks about a great bull market, is it a time to sell? If the front page speaks of a great bear market is it a time to buy? Professional analysts and traders will know this from personal anecdotal experience. By the time one of the non-trading friends or family speaks about a certain investment the market is usually saturated and about to reverse. It is a strange counterintuitive phenomenon that when everyone says ‘buy’ it can ... (full story)