Mob Psychology: Market Crash of 2016 – Buying Opportunity

stock market predictions 2016

Mob Psychology clearly illustrates that the Crowds are  still very nervous 

The crowd is very nervous, as demonstrated by the extreme moves the market is experiencing. One day it’s up, the next day it’s down. One day the data looks great, the other day the data suggests the economy is on the verge of a recession.

Stock market predictions 2016- take expert advice with a grain of salt

Fear is in the air, and the masses have just moved to the border of the Hysteria zone. The trend is still up on the NASDAQ and the Dow, so the outlook remains bullish. As volatility levels are very high, view very strong pullbacks as buying opportunities. A test of the August lows is likely, with a possible overshoot to the 14,800-15,000 ranges to destroy the last of the ardent bulls.  The RSI has generated a nice series of positive divergence signals too.

Mob Psychology states stock market predictions 2016 will be full of hot air

Mob Psychology clearly illustrates that the Crowds are still very nervous

Tactical Investor stock market predictions 2016 

All our proprietary sentiment indicators are trading in the extreme ranges, indicating that panic is in the air, and opportunity is waiting to give you a big hug if you welcome into your domain. Do not become one with the crowd; crowd psychology states that you should be buying when the group is selling and vice versa.  Smart money is buying the dip as opposed to selling into strength; the crowd, on the other hand, is selling the fall and will scream when the markets mount a stunning rally in the months to come.Mob Psychology states Market Crash of 2016 is buying opportunity

Stock market predictions 2016; focus on the trend and have a game plan 

As the masses ar still nervous then the obvious but difficult task at hand is to embrace every strong correction or pullback and treat as a buying opportunity. The SPX tested its Aug lows and in doing so triggered a rather strong positive divergence signal.  Ideally, the Dow should follow a similar setup;  compile a list of strong stocks and use pullbacks to add to your position or open new positions. Some examples of top stocks are BABA, MCD, AMZN, GOOG, RTN, OA, TAST, etc.

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