Monday, February 5, 2018

Following Headlines Rather Than TIME

Here comes the headlines that teach investors to study relationships and their portfolios after the fact. Stock sold off largely because cycle of TIME was extremely extended across the board in daily trend. Smart money was forced to act (reduce risk) when the daily VIX entered upside alignment on 1/25. The majority, a group that does not read the tape, should be watching from the sidelines, ready to nibble at support, rather than searching for explanation of what happened. TIME happened.

Bitcoin and cyrptocurrency traders are also learning the lesson of TIME. Expect the majority of inexperienced trades to be selling (and panicking) when TIME directs them fade the panic.

Headline: Watch for another selling wave in the stock market as investors are forced out of their low volatility bets

This is the market dip you wanted. Or said you wanted, as the market kept levitating without let-up for months. Or thought you wanted, before the reality of a 4 percent one-week tumble reminded us how unnerving a sudden break in stock prices looks and feels in the moment.



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