Friday, July 15, 2016

Failure in Markets Follows Path of Opinion

Those telling themselves stocks, bonds, gold, etc., should be this high or low, most likely are not listening to the message of the market. For example, the majority was quite bearish on gold when it entered a focused bull opportunity on 02/09/16 (see COT Matrix).

The following comment, a warning to subscribers to respect the power of the invisible hand, was copied to all gold reviews after 02/09:

Gold's trend, a relatively fresh up impulse with plenty of skeptics, could be leading these events. The bullish focused up impulse; therefore, must be respected until it flips. A transition from up to down impulse could last weeks weeks or months.

COT Matrix 02/09/16

Those that believe stocks shouldn't be this high should be asking what does the invisible hand think? (COT Matrix, Review of Sentiment, Review of S&P 500)

Headline: Stocks shouldn't be this high: World's largest asset manager

Even as the Dow eclipsed the 18,500 mark on Thursday and the rally gains momentum, some influential figures in finance remain skeptical.

"I don't think we should be at new highs," Larry Fink, CEO of BlackRock, the world's largest asset manager, told CNBC. He pointed to signs that retail investors haven't joined the move higher in stocks.



Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.