Cracking the Code: How To Read Stock Trends

 How to Read Stock Trends

 How to Read Stock Trends 2020

Updated March 2023

Before we get into the meat of the article, let’s look at some of the statements we made over the past few weeks. These comments are being extracted from the market update service.

Put your personal feelings aside and understand this simple fact. No bull market has ever ended on a note of fear; it has always ended on a note of extreme joy. Market Update Jan 17, 2020

Since the inception of mass media, the idea has been to stampede the crowd or create a feeling of euphoria, and both conditions are deadly when it comes to investing. However, the new ploy is to keep the masses agitated constantly or uncertain. Why would they do this? When someone is uncertain, it takes longer for them to cling to a given viewpoint; they keep jumping from one camp to another, which is why this bull market has lasted so long.

A sharp pullback is still an outcome we view through a bullish lens. The ideal setup calls for the Dow to trade in the 28,800 to 29,000 range, with a possible overshoot of 29,300. After that, a nice sharp pullback would set the bedrock for a surge to and possibly well past 30k.  Market Update Dec 29, 2019

Unveiling the Stock Market Secrets: Cracking the Code of Trend Signals

The best time to buy is when the masses are in a state of disarray, and this usually occurs when it looks like the markets are crashing. The masses are hardwired to view strong pullbacks as the start of a new crash, but most pullbacks are nothing but resting points; the markets use these stops to build up energy for the next upward leg.  Tactical Investors should hope that the market’s pullback strongly, for it gives them a lovely opportunity to open long positions at a discount.

It is also one of the reasons why the small player is generally still sitting on the sidelines.  They still don’t know if they should jump in and buy or if shorting the markets is the right course of action; the longer they remain uncertain, the higher this market will trend. Market update Jan 7, 2020

One can immediately spot that the media takes delight in blowing anything out of proportion as it comes down to eyeballs and dollars. The more bombastic the headline, the more attention it will get, even if this attention is for a few minutes. Ultimately, we don’t have news today; what we have is weaponized gossip.

Stock Trends and The Coronavirus Factor

The Coronavirus issue will be blown out of proportion and made to look like the mother of all pandemics. We are seeing individuals not qualified to make projections on the rate this virus will spread, stating that millions will be affected.

Now people are being checked with thermometers to see if their temp is above normal, and an above-normal temperature has become the litmus test for the Coronavirus; voodoo science at its best. This is one of the most retarded medical tests of all time, but no one seems to notice; a real-life depiction of “Pluto’s Allegory of the Cave”.

According to the CDC, during the 2018-2019 flu season, approximately 35.5 million people fell ill with influenza. Of these cases, around 16.5 million individuals sought medical care, resulting in 490,600 hospitalizations and 34,200 deaths. These figures are comparable to the estimated number of flu-related illnesses during the 2012-2013 season, where around 34 million people experienced symptomatic influenza. More details

In comparison to the flu virus, the Coronavirus has caused a minimal amount of damage. Yet, it has received 100X more coverage than the flu virus, which resulted in 34.200 deaths (and only US data is being used).

Tobacco use is responsible for over 7 million deaths annually worldwide. If the current global smoking patterns persist, it is projected that over 8 million people will die each year from tobacco-related diseases by 2030. More details

Many masks worn by individuals offer limited effectiveness against viruses, and even masks that provide protection must be worn correctly to be effective.  More details. According to other experts, masks are considered useless in preventing virus transmission as the virus can be spread through the eyes.  More details

 How to Read Stock Trends: Conclusion

There is a 75% chance that the markets will experience at least one strong pullback this year; it would be foolhardy to attempt to predict the exact date though it would be ideal if this event took place during the  1st quarter.  Market Update Feb 20, 2020

This correction is taking place in the ideal timeline, so it will lead to a spectacular rally when it ends. Those waiting for the crosswinds to subside will (as always) be left holding a can with rotting worms.

 The masses beg for an opportunity to buy stocks at a lower price; when that opportunity arises, they panic, stating that they need to wait for things to improve before jumping in again. And so they wait, and when things finally get better, they notice that the price of everything they wanted to buy is higher than before, and so starts the next stage of sorrow.

Notice anything odd above in terms of market sentiment. The markets have sold off, so one would expect bearish readings to soar north off 55. Instead, while they have risen, they are only at 41. What’s very interesting is that the number of individuals in the neutral camp is holding steady at 33, and this confirms that the masses are still uncertain, which means that the rebound from this correction will push the market to new highs.

Unveiling the Mystery: Mastering the Art of Reading Stock Trends

This market has yet to experience the “feeding frenzy stage,” we expect the action to be twice as powerful as the current downward action gripping the markets. We expect the Dow to experience upward moves ranging from 500 to 1000 points several times before the market even comes close to hitting a massive long-term top.

The needle on the anxiety gauge has swept deep into the hysteria zone extremely rapidly, indicating the crowd is one stop from moving into a zone that, until now, we did not create “the madness zone”. If the gauge moves into this zone, we could have an event that will become known as the “father of all buying events.”

FAQ On How To Read Stock Trends

Q: What is the main point about bull markets made in the text?
A: Bull markets end on a note of extreme joy, not fear.

Q: Why does the bull market last longer when people are uncertain?
A: Uncertainty prevents people from committing to a specific viewpoint, prolonging the bull market.

Q: What is the ideal setup for a surge in the market?
A: The Dow trading in the 28,800 to 29,000 range, with a possible overshoot to 29,300, followed by a sharp pullback.

Q: When is the best time to buy stocks?
A: The best time to buy is during market pullbacks when the masses are in disarray.

Q: Why are small players still sitting on the sidelines?
A: Small players remain uncertain about whether to buy or short the markets, causing the market to trend higher.

Q: How does the media operate in relation to news?
A: The media blows things out of proportion for attention and uses bombastic headlines, creating weaponized gossip.

Q: What prediction is made about the coverage of the Coronavirus?

A: The Coronavirus issue will be exaggerated and made to appear as the worst pandemic, despite causing minimal damage.

Q: How does the Coronavirus compare to the flu in terms of coverage?
A: The Coronavirus has received 100 times more coverage than the flu, even though the flu resulted in more deaths.

Q: What is mentioned about the effectiveness of masks against viruses?
A: Many masks are not useful against viruses, and some experts state that the virus is spread through the eyes.

Q: What is the likelihood of a strong market pullback?
A: There is a 75% chance of experiencing at least one strong pullback in the market, ideally in the 1st quarter.

Q: What happens to those waiting for the market to improve before buying stocks?
A: They end up paying higher prices when things get better, leading to the next stage of sorrow.

Q: What does the neutral camp’s size indicate about market sentiment?
A: The neutral camp’s size suggests that the masses are still uncertain, which will drive the market to new highs.

Q: What is expected to happen in the market in the future?
A: The market will experience a powerful upward movement, surpassing the current downward action, leading to a massive long-term top.

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