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How's this for a contrary indicator: The first exchange-traded bond index funds debuted last Friday and then were followed by Monday's ferocious stock market rally.
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Some market participants view the low level of the VIX as an indication of excessively positive sentiment among investors and thus a contrary indicator for the general direction of stock prices.
If there ever was a contrary indicator for the cheap valuations of small-cap tech stocks, it was the recent low investor turnout at this year's American Electronics Association Conference AEAA Classic).
As effective as the Black List is in turning scripts into movies and in predicting award winners, it has been a contrary indicator for box-office revenue.
For those not familiar with the correct interpretations of volatility as a contrary indicator, let's review them first.
In fact, if oil-price movements have any relevance at all in economic forecasting, it is as a contrary indicator.
Mr. Breit finds VaR, a commonly used measure, useful only as a contrary indicator.
Of course, Mr. McManus and many other professional investors view bearishness by small investors as a contrary indicator.
Discount stores, including Wal-Mart, were an exception (which bodes ill; Wal-Mart is a contrary indicator).
But being aware of past economic growth does not help; or rather, it is a a contrary indicator.
Traditionally, the put-call ratio has been viewed as a contrary indicator, meaning that if investors were buying a lot of puts, it was viewed as an indication that bearishness had reached an extreme and the market might soon rally.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com