Over the past few weeks, the number of individuals in the neutral camp rose, as did the number of bulls, and only the number of bears experienced a drop. When we combine the neutrals and the bears, the total is 72%, and that tells us that the sentiment is still too negative for a crash.
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The level of negative news continues to pile up as we expected; the Fed is priming up the crowd for a reversal. Just a few months ago, these guys were busy proclaiming that all was well, now they are ready to pull another fast one. It is amazing how gullible the masses are, and these top players have no respect for the masses. They view them as cannon fodder; they use the same old strategy over and over again, and the masses are none the wiser.
Look at some of the headlines
Recession sign is in play and has 81% accuracy
Yield curve recession indicator sends warning on US economy
David Levy Forecasts a Global Recession in 2016
U.S. economy hits soft patch in fourth quarter as inventories, trade weigh
Why 2016 keeps getting uglier for US economy
“We Are In A Recession”: Dallas Fed Respondents Admit The U.S. Economy Is In Freefall
Will America’s economy get dragged into recession?
The trend quite clearly illustrates that misery loves company, and until misery hates company the masses will always lose. The Fed’s are masters of mass psychology, and mass psychology trumps all other analysis, for it reveals up to what limit you can push the masses. Emotions are the main driving force for 99% of the populace; hence, if you understand mass psychology, you understand the main driving force behind the mass mindset. This is why the Fed can and will push the envelope to the outer limits. Market Update Feb 17, 2016
Notice how misery loves company, Google “US economy in trouble, or US economy facing a recession” or any other negative topic and you will find a plethora of new articles being pushed out almost on a daily basis. The consensus is for the economy to pull back and consequently for the markets to tank. The economy could sputter, but the markets will not tank as everyone is leaning towards that direction. Everyone usually knows next to nothing when it comes to the market. Unless the trend turns negative, you should not give two hoots to the doom scenarios these highly paid clowns come up with.
As the trend is up, all strong pullback should be viewed as buying opportunities. The more substantial the deviation, the better the buying opportunity. Some stocks that look attractive are CALM, RTN, COST, TAST, IRMD, GOOG, etc. Use pullbacks to add to your positions.
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