Define Bull Market: This Market Is A Perfect Illustration Of One
The bull is still healthy; it’s taking a breather but the internal structure of the market is very strong, so while there are sectors that are pulling back more sharply than others, a host of them are holding up very well. In fact, as we stated last time, there is a huge number of stocks that have refused to correct, and a large percentage of them have surged to new highs during this corrective phase.
There is so much misinformation when it comes to the financial markets that it must seem like a daunting task for a novice player to separate the riff from the raff. One would think that with the passage of time the situation would improve, but it’s only worsened. However, there is a ray of light which will eventually turn into a massive beam; traditional finance sites are losing eyeballs, and the level of dissatisfaction has now hit a critical mass, which means that this sector is ripe for a trend change. We can state without a doubt that when this trend change occurs many established sites and business in this sector will vanish.
Most of Today’s Experts Hide Behind Gibberish
They use complex fundamental terms or complex technical analysis studies to justify their position. A simple examination will reveal that over 80% of these guys are full of it and that they only reason they come up with that mumbo jumbo is to make it look like they know what they are talking about when the opposite is probably closer to the truth. Define Bull Market; Try Identifying one instead of wasting time trying to define one as is the case with most experts. Instead of trying to teach individuals what constitutes a bull market, they only focus on the bull aspect and not the market aspect. Hence, most teachings from these so-called experts should be treated on par with trash.
While we do favour some aspects of Technical Analysis, we are not TA fanatics. We have done our level best to present these tools in a simplified manner without trying to fixate on complex formations (Head and shoulders, wedge formations, etc.) and we will continue to look for ways to simplify the technical analysis aspect even more.
Define Bull Market: Forget That Rubbish & Focus on The Trend
Our favourite tool will always be mass psychology. If someone tries to make a simple concept appear complex, it’s a clear sign that they don’t know what they are talking about. 90% of technical analysis in our opinion falls under the category of “rubbish”. For example, we find it amusing the amount of time and energy that’s allocated to studying market omens like the death cross, Hindenberg omen, etc.; these omens have such a pathetic track record that if you have never heard of them, don’t waste your time trying to google them. There are some aspects of fundamental analysis that are useful, and the same applies to Technical Analysis.
This high level of dishonesty and manipulation has pushed millennials into a state where they feel that splurging on themselves is better than listen to some charlatan’s advice on how to invest that money. In short as we have always stated the equation has to balance; eventually, millennials and the generation after that are going to embrace the markets with gusto.
Mass Sentiment proves that this Bull Market is still Intact
The combined score of the bears and the neutrals are still trending upwards; this week’s reading of 61 shows that they are still very nervous and the Anxiety index confirms this. Keep mind that wide range-bound action, while boring at times, creates huge bouts of fears when the markets suddenly experience wild swings. As the trend is up, the more volatile these moves are, the better the long-term opportunity. Nothing propels the majority to dump their shares like a market that’s pulling back rapidly; a one day 1000 point move by the Dow has 3X to 4X the effect, then a 1200 point downward move over four days.
Other Stories of Interest
What if any are the Economic Consequences of Trump’s Trade War (July 20)
Trump to Unveil $1.5 Trillion Infrastructure Plan (Feb 18)
Oil majors strike it rich on rising crude prices (Feb 12)
When Will The Bull Market End? (Feb 10)
Forget About Higher US Rates; We Are Going Negative (Feb 09)
Stock market crash or healthy correction? (Feb 06)
Should you sell or stay put in the stock market? (Feb 02)
Huge Fifth Third stock buyback sends shares soaring (Jan 13)
Emerging Markets See Lowflation (Jan 11)
Why are most Americans not investing in the Stock market? (Jan 10)
