Sentiment in the Forex Market: Indicators and Strategies to Profit from Crowd Behavior and Market Extremes

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24 SENTIMENT IN THE FOREX MARKET

verification and thus are considered highly reliable. But because the

data require thorough editing, they are available only after a lag of

about one year.

Securities Transactions

The data series are based on submissions of monthly TIC Form S,

“Purchases and Sales of Long-Term Securities by Foreigners.” These

reports are mandatory and are filed by banks, securities dealers,

investors, and other entities in the U.S. who deal directly with for-

eign residents in purchases and sales of long-term securities (eq-

uities and debt issues with an original maturity of more than one

year) issued by U.S. or foreign-based firms. Typically, the data se-

ries are revised for up to 24 months after the initial “as of” report-

ing date. The data are released to the public with a lag of about

1 1/2 months. The data reflect only those transactions between U.S.

residents and counterparties located outside the United States. The

data cover transactions in six classifications of securities: There are

four domestic types of securities, which include U.S. Treasury bonds

and notes, bonds of U.S. government corporations and federally-

sponsored agencies, U.S. corporate and other bonds, and U.S. cor-

porate and other stocks; and two foreign types of securities, namely

foreign bonds and foreign stocks. The