Wednesday, March 22, 2017

02/17 Large Cap Stock Cycles $SPX

Large Cap Stock Cycles
As long as the US Stock rally continues defying conventional wisdom of the majority, for example a bull market in stocks cannot coexist with a bear market in bonds or backdrop of rising interest rates, bearish calls that ignore even the most most basic cyclical definitions of bear markets will continue (1 - Yellen has been wrong, 2, 3, 4). Trend impulses origination from concentration of sentiment, price, leverage, and time. These forces which shape cycles in dividend yields, help investors define equity 'bubbles' and 'pits' or extremes of greed and fear.

Who's the more foolish; the fool or the fool who follows him?

Experienced traders either recognize that the majority always follows the fool or they will be destroyed by them. This makes understanding the message of the market extremely important.

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