Friday, April 29, 2016

Endgame For #USStocks Comes When Majority Is Overwhelmingly Optimistic

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If the future direction of the stock could be distilled into two clear signs, I wouldn't need computers to track and manipulate complex information that exceeds the abilities of even the most-skilled and intelligent investors. The majority, chronically a day late and dollar short in terms of timing, would also be bloody rich from trading and investing.

What could be the most hated rally in modern history keeps the public afraid and generally watching from the safety of the sidelines, parking in cash or 'safe' US Treasury Bonds (gulp!). The latest Review of Sentiment, a tool that emboldens subscribers to think outside the box, confirms that stocks generally exceed expectation (usually bearish) when the majority hates them, and vice versa.

Headline: 2 clear signs the stock market 'endgame' is approaching

Is this the top?

In a note to clients on Friday, UBS strategist Julian Emanuel suggests that a few signs pointing to the "endgame" for stocks are coming into view.

The basic outline is that once the Fed starts raising interest rates the wheels are set in motion for the stock market to go lower.


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