Herd behavior and COVID Stock Market Crash
Bullish sentiment is still trading above its historical average though it has yet to test the 55 ranges again; a surge to the 60 ranges will probably indicate a short-term market top is in place.
The idiots behind the COVID hysteria are purposely making it appear that the mutations this virus is undergoing are novel. This virus is related to the flu. The flu has been here forever. It mutates every season, so what do these penguins masquerading as experts expect? Do they think the virus is just going to lie down and drop dead? Like it’s relative the flu, it’s going to mutate. It is unlikely there will be a vaccine that will have an efficacy rate of even 60%
Before the COVID-19 hysteria, we stated that the Fed (and the top players) had decided to accelerate the currency race to the bottom. The objective was to finish last. The sad part is that only those who are oblivious to this ploy will lose, while the top players will make out like bandits. Who are the losers, the masses, of course? Think of it like this, before the currency is deflated, you might have 100 bucks. If one invests one’s funds in suitable investments, one will not be adversely impacted by currency devaluations. In fact, one can make a small fortune if one act’s wisely on this information. Let’s say that the current devaluation means that you would need 200 bucks today to equal the 100 bucks you had yesterday, but instead, you have 1000 dollars. You see the ploy here; the top players know that while debasing the currency is wrong, it’s not bad for everyone. It’s just terrible for those individuals that believe their governments will take care of them. This is why the poor get poorer, and the rich get richer; it’s elementary, as Sherlock Holmes would say.
Herd behavior: COVID based hysteria is creating a massive opportunity
The COVID pandemic is going to be used to push two trends aggressively. Push the printing press into hyperdrive; that’s being done as we speak. Money is being created left, right and centre, and no one is complaining. As we predicted before, the masses would one day beg for more and more. Now after each stimulus is approved, the masses stand in line, hoping for more. The second trend is to speed up the pace at which AI is embraced. This trend is being pushed because it will speed up other trends, the universal salary trend and the elimination of most jobs. When a person gets paid to do nothing, they are desperately looking for some meaning. So, they will turn to virtual reality and drugs.
Notice how fast marijuana is becoming legal. The next wave of drugs to be legalised will be psychotropic drugs. With drugs and VR tech improving at a very rapid clip, the average person will be jacked into zombie land and fed by tubes. Payment for these services (from the universal income program) will be deducted automatically from their accounts. Finally, you will have tombs with people plugged in 24/7, never wanting to leave the VR world, and if unplugged, they will be so depressed and jaded that they will demand to be plugged in. It will be like the Matrix (the movie), only this time; people will be voluntarily lining up to embrace a world where they can be kings, queens, movie stars, etc. Sounds like a fantasy; watch with shock as Augmented reality technologies suddenly experience a massive breakthrough. This breakthrough will be so huge that the average person will be unable to distinguish reality from fiction.
New drugs will come to market that will enhance one’s sensory apparatus to such an extent that anyone that tries these drugs will no longer be interested in a normal relationship. Ironically, these technologies will be the most effective birth control and population control mechanisms ever invented. Technology will usher the peak population cycle, and after that, the world’s population will continue to decline for at least 60 years—more on this in future updates.
There is no change in the Anxiety index, and there is a spike in the number of individuals in the neutral camp. This informs that a substantial percentage of traders don’t know what to do or what to expect from the markets, which is bloody good news. When the markets sell off, the dumb money will be doing most of the selling while the smart money will be waiting for the fear levels to surge, and then they will come in and start buying. Isn’t it sad, like clockwork, the masses react in the same way, year, year after year, decade after decade and millennia after millennia; nothing changes. You would think now, where the boom and bust cycles start and end so fast, the masses would catch on, but they will not because they believe that fear is something real and that one needs to listen to the voice of fear. Therefore, their only reward will be an empty rusty can.
The markets are likely to top when the bullish sentiment surges to 60. At that point, the Dow/Nasdaq could shed 15 to 19% of their weight. There is no indication of the trend changing, so unless it does, one should jump up with joy when the Dow sheds over 1500 points.
On the weekly charts, the MACD’s have experienced another bullish crossover; this setup is likely to usher a test of the 1300 to 1350 ranges, with a possible overshoot to 1450. If the Nasdaq trades past 1350 on this leg up, then the likelihood of a strong correction would surge to the 70% ranges, and correction in the 15% to 19% ranges is more likely than a correction in the 9 to 11% ranges. Market Update Dec 21st, 2020
As we have a bullish crossover on the Nasdaq’s weekly charts, the odds are relatively high that the Nasdaq will at least test the 1300 to 1350 ranges.
We will discuss some of the significant trends for 2021 in the next update. However, two trends that will accelerate in the West are loss of freedom and polarisation levels are expected to surge even more, especially in America.
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