No test? No validation whatsoever? Ah, found this: “Consistent with behavioral models, Photo Pessimism predicts market return reversals and trading volume. The

No test? No validation whatsoever? Ah, found this: “Consistent with behavioral models, Photo Pessimism predicts market return reversals and trading volume. The relation is strongest among stocks with high limits to arbitrage and during periods of elevated fear.” Anybody who is a bit familiar with the stock market knows that highly arbitraged stocks tend to fluctuate greatly with bad news. The effect here is magnified so it’s easy to say there is a correlation. But by no way it can represent the market sentiment as a whole. And IMO it doesn’t speak for the value of the model.