Monday, October 11, 2021

#USStocks Review Timing A Correction

US Stocks Review
Those that view the message of the market on daily basis are likely confused by trading noise. While trading noise contributes to the long-term trends, it does not define them. Human behavior tries to explain trading noise as a meaningful trend. This confuses the majority which, in turn, contributes to their role as bagholders of trend transitions.

The global economy and stocks began behaving strangely in late summer of 2019. Repo rates spiked unexpectedly. Few acknowledged it. Anyone looking for a return to "normal" market by fundamentals will likely be disappointed in the coming years.

Stocks crashed in early 2020. Relative performance within the stock market suggests a reallocation of resources away from old to new economic plays. The old norm of "Made in USA" is not coming back. Manufacturing, design, and information collection will be borderless. Citizens will struggle to maintain their liberties and rights without oversight and intervention under this economic backdrop.

Rising stocks as the global and certain market groups decline is a real possibility that has been discussed for years. The stock market's distortion of reality is being attributed to the Federal Reserve. The Fed, contrary to popular opinion, is not that powerful. It cannot control the world's capital flows. The invisible hand, the true driver of market and trends, is redefining the world as the core economy passes from North American to Asia.

Subscriber Comments

Subscribers should be fully versed in the TIMING A CORRECT/CRASH STOCKS (TAC) section in the Trends Tab of the Matrix. Selling often materializes with 50% or higher. Short-term selling and crashing are not the same thing, so don't confuse this with a narrative. Leave the angry man yelling at a cloud because stocks never go down for the fools on social media. The path of least resistance is up until the primary trend flips down, or the percentage climbs higher than 50%, or, the VIX Model or Composite DI turns bearish. You'll see a quick review when it happens. If you're still yelling at the cloud when that happens get ready for the 2x4 to the head, courtesy of the invisible hand.

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