Herd Mentality Psychology: Predicted crude oil bottom

Herd Mentality Psychology

Herd Mentality Psychology In-Play

Updated Dec 2022 

One thing you should never do is listen to fools who scream that the world is going to end or a market is going to continue crashing forever. Some markets are more manipulated than others; there are no such things as free markets today. So you need to accept that and move on. Watch the Video towards the end of this article, where the brain surgeons predict that oil could now hit $10.00 a barrel.  What is interesting is that in most cases, these same naysayers were stating that oil would continue soaring higher when it was trading over $100.00

Instead, please focus on the mass Psychology aspect of things; when everyone is gloomy, it is a sure signal that a bottom is close at hand. This is what we had to say in February of this year.  The content below is extracted from the market update sent out to our paid subscribers.

Nothing much to add here other than the projected outlook has come to pass.  Oil should not close below $30.00 on a monthly basis to indicate a tradable bottom is in place. The move to new lows suggests that another test of the lows is possible, with a strong chance of overshooting to the 23.00 range.   Market Update Feb 17, 2016

Herd Mentality Psychology: Don’t Listen To Experts

From a pattern perspective, oil has fulfilled the projections of putting in a bottom in Feb; after dropping down to the $26.00 range, it is up almost 20%. However, until the trend turns positive, the lows could be rapidly tested again with a possible overshoot to the 23.00-24.00 ranges, after which another fast reversal should take oil above 30.00.  Notice that the $30.00 price point level has held on a monthly basis.

Oil has not closed below this critical level on a monthly basis for two months in a row, and this has to be viewed as a very bullish development. Our overall view is for crude oil to trend higher, possibly trading past the  $55.00 range.  In the face of extreme negativity, oil is reversing, just as it collapsed in the face of Euphoria.  A weekly close above 35.00 will set the foundation for oil to trade past the primary downtrend line and, in doing so, send the first signal for a move to the $50 plus range.   Market Update Feb 29, 2016

Now to the Video making a case for $10.00, which sadly will not come to pass anytime soon; we don’t expect oil prices to trade up forever; in fact, renewable energy will displace oil in the near future. As early as 2020, the cost of an electric car could be comparable to that of a Petrol-powered car.

Update on the Overall Stock Market Aug 2019

It takes zero effort to panic, and the reward is precisely zero; those that panic in the face of adversity are given what they deserve in terms of the market, which means less than zero, as the masses always sell at the bottom and buy at the top. The astute individual that does not panic walks away with a considerable reward, and that is how it’s been for millennia, and nothing will change for another 1000 years.

There is no law or set rules for the markets other than being able to adapt to a given situation. We are dealing with emotions, and chaos is set free when emotions do the talking. And that is why like cattle, the lemmings always stampede when the markets sell off. The masses also tend to jump in when the markets are about to crash. Hundreds of years have passed since the Tulip bubble, and nothing has changed.

The markets are volatile (Sept to Oct period), and the crowd tends to overreact to the news. Remember, every disaster becomes a disaster because the masses were conned into believing a false narrative. You say no way; how come reacting to disasters pays so poorly?  The stock market is the best barometer for disaster-prone. If disasters paid off well, the Dow should be closer to zero than 27K.

Other Articles of Interest:

The Pitfalls of Group Think Psychology in Investing

The Pitfalls of Group Think Psychology in Investing

Group Think Psychology: Avoid the Lemmings March 16, 2023 In the world of investing, understanding the power of mass psychology ...
Read More
Fed Chair Jerome Powell

Fed Chair Jerome Powell: The Jackass

Unmasking the Idiotic Moves of Fed Chair Jerome Powell March 12, 2023 Jerome Powell, the Chairman of the Federal Reserve, ...
Read More
Amd Stock Forecast

AMD Stock Forecast: How MACDs & RSI Signal a Bottom

MACDs and RSI: The Basics: Feb 25, 2023 When analysing stock market bottoms, MACD and RSI indicators are two popular ...
Read More
impact of investor sentiment on stock market

Stock Market bottom: The Role of Sentiment

February 24, 2023 Article overview In this market analysis, a stock market bottom is a crucial factor in determining the ...
Read More
Technological progress

Technological Progress

Exploring the Myriad Ways Technological Progress Has Flourished in Recent Decades Feb 20, 2023 One might contend that progress is ...
Read More
Depths of the Unconscious Mind

Exploring the Depths of the Unconscious Mind

Overview of the Unconscious Mind Feb 20, 2023 Research supports the idea that our unconscious mind plays a significant role ...
Read More
Conquering the Stock Market Cycle of Manipulation with Mass Psychology

The Cycle of Manipulation in Investments

The Game of Deception: Navigating the Cycle of Manipulation in Investments Feb 18, 2023 The stock market manipulation cycle has ...
Read More
Is everyone losing money in the stock market

Is everyone losing money in the stock market?

Investment Behavior and the Perception of Losing Money in the Stock Market Feb 18, 2023 'Tis with great veracity that ...
Read More
Short-Term vs Long-Term Investing Strategies

Short-Term vs Long-Term Investing Strategies

February 16, 2023 Surviving Stock Market Volatility: Short-Term Investing Strategies Investing in the stock market can be a wild ride, ...
Read More
Financial Stress Index

Understanding the Kansas City Financial Stress Index

Understanding the Kansas City Financial Stress Index: A Comprehensive Guide to Assessing Market Risk and Opportunity February 15, 2023 The ...
Read More
Minimizing Losses in the Stock Market

Minimize the Risk of Losing Money in the Stock Market

Embracing a Contrarian Approach to Minimize the Risk of Losing Money in the Stock Market Feb 14, 2023 Losing money ...
Read More
Long term investments

Securing Your Future: The Power of Long-Term Investments

The Pros and Cons of Long-Term Investing: Building Wealth Over Time February 13, 2023 The stock market can be confusing ...
Read More
Investment style

Investment style: Going Against the Grain

February 12, 2023 Investing is a complex and multifaceted field, with various methods and strategies to choose from. Among the ...
Read More
Mastering Money: Your Financial Playbook

Mastering Money: Your Financial Playbook

Mastering Money Feb 13, 2023 The stock market is a complex and dynamic entity that can be difficult to predict, ...
Read More
The Importance of Keeping a Trading Journal

The Importance of Keeping a Trading Journal

Trading Journal: The Road to Financial Success Feb 8, 2023 Investing can be challenging, and every investor's experience is unique ...
Read More
Exploring the Intersection of Investing and Murphy's Law: Supporting Research and Insights

Exploring the Intersection of Investing & Murphy’s Law

Murphy's Law & Losing Feb 11, 2023 The behaviour of investors during bullish and bearish market phases has long been ...
Read More
War of Attrition: Strategies for Thriving in Times of Crisis through Investment

War of Attrition: Strategies for Thriving in Times of Crisis

War of Attrition Feb 6, 2023 This chart contains data going back to 2000. The main point here is to ...
Read More
Dow Jones Outlook

Dow Jones Outlook: Understanding the Dangers & Rewards of Crisis Investing

Feb 5, 2023 The monthly chart of the Dow highlights the Path it and general markets follow could be similar ...
Read More
Financial Stress

Financial Stress: The Surprising Opportunity for Savvy Investors

Feb 10, 2023 Contrary to popular belief, financial stress can present a unique opportunity for savvy investors in the stock ...
Read More
financial anxiety

Financial anxiety: Follow The Trend

Financial anxiety: Short-term market outlook Feb 2, 2023 The following projections were curated from the November 28th Market Update, providing ...
Read More
Investment Opportunity & Market Crashes

Investment Opportunity & Trading in the zone

Trading in the Zone: Mastering the Psychology of Trading Dec 30, 2022  Irrefutable Evidence that Crashes Equate to Investment opportunity: ...
Read More