Thursday, March 11, 2021

#Sentiment Review $SPX

Sentiment Review
The old American idiom of a day late and dollar short is an phrase easily applied to majority's ability to time (buy or sell) US stocks. The majority, influenced more by instinctual behavioral tendency of the individual to seek acceptance of an emotionally-driven crowd than act independently in the minority, views rising and falling stocks prices as bullish and bearish. This tendency that drives them chase when probabilities favor fading relegates the majority as the consistent bagholders of history's panics and trend changes.

Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria.”, John Templeton

Subscriber Comments

Sentiment has been a one way street for stocks for months. The computer flows and reports on sentiment in the US Stock Models section of the Matrix. Direction defines the phase; it's either bull or bear. Direction often continues until the model's price and time cycle become concentrated, or sentiment becomes concentrated.

The value of the sentiment model is often determined by the latter. The majority always gets timing wrong. They're super bullish when they should be cautious, and vice versa. This is an important discussion for subscribers. Subscribers should be following WAS and WAS closely in the coming weeks.

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