Tuesday, March 14, 2017

The Majority Is Still Too Afraid To Buy Stocks $SPX

Bearish stock market calls have been recommending investors remain sidelined (don't buy stocks) for reasons ranging from a low VIX, stretched fundamentals, domestic explanations for the rally to yet another short-term buying climax. Although price, leverage, and sentiment (the message of the market defined in the Matrix) have consistently discredited the bearish calls, they continues to be ignored by a majority still heavily influenced by devastating losses of the 2007-2009 bear market. The majority's lingering fear and tendency to accept unsupported opinions has kept them on the sidelines for the bulk of the 2009 stock rally.

The majority's hesitation to own stocks won't last forever. Soon they will discard it and begin buying a maturing trend. The decision to transition from sideline-watchers to bagholders tells smart money that the rally is closer to an end than beginning. The Matrix, a table that reports long-term concentration and direction (cycles and trends), will help subscribers recognize and quantify the transition to a log-term buying climax. Subscribers will be selling to the bagholders when this risks of it get too high.

Buying climaxes, often described as cycle inversions relative to the conventional investment and economic wisdom, generally require a study of history that extends beyond the experiences of an average lifetime. Fifty years of market observations, for example, is inefficient amount of experience to interpret this cycle.

Stocks' up trend has become even more focused as pessimism rises.

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