Contrary Indicator – Fox Business Channel Launch
“We should surely expect to see stories about the stock market featured in the financial press such as The Wall Street Journal . This in itself tells us little. On the other hand, when a feature article on the equity market appears in general circulation publications such as Time, Newsweek, or US News and World Report, we should take note because the story has begun to circulate well beyond the usual financial circles….. The interesting thing about such stories is that they invariably occur after a substantial price movement has taken place…. To the contrarian, the appearance of such stories is not a signal to buy; rather, it is a sign that it is time to think about selling.”
– Investment Psychology Explained (1993), Martin Pring, Ch. 9 “When To Go Contrary”, pgs. 139-40
In it, he explains how slow moving, popular media generally try to capitalize on a trend long after it is well established and frequently near the time it has run its course and is about to reverse.
I noted the launch of “Fast Money” at the end of 2006. This is another example.