Sentiment Market Cycles

 Cycles are the important structure here because sentiment does not jump rapidly from one state to another. A change of mood requires time; therefore, Sentiment Market Cycles move in dynamic cycles or waves. This is a similar process to changes in air temperature: the outside temperature does not jump from one state to another. Therefore, the significant challenge is to spot and predict the turns in the mood cycle. If we can extract the dominant cycles of public mood that are related to certain economic vehicles, it would be interesting to see if they are predictive.