Friday, January 27, 2023

#USStocks Review #ES_F $SPY

US Stocks Review
Trading noise, the random movement of price over the short term, does not control trends, cycles, and profits. The majority, an emotionally driven group focused solely on price, often interprets it as meaningful information. This leads to confusion, frustration, missed opportunities, and leaves the majority as the bag holders of trend transitions. The Evolution of the Trade helps investors stand separate from the majority.

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 economy declines is a real possibility. Investors blame the Fed for the stock market's distortion of reality. 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

The majority, which includes the permabears and their followers liking their calls, remains pessimistic and bearish. This is confirmed by the American Association of Individual Investors' data rather than opinion (see Investor Sentiment Towards Stocks). Finding bearish stocks calls on the Internet is easy. There lies the problem. The majority is never right.

Investor Sentiment Towards Stocks

Easy generates clicks and followers, but it's rarely right. Although the stock market has been best described as trading in a box for months, it is filling with bullish drivers. Drivers include a growing number of primary trend flips, bullish sentiment and VIX model, concentrated VIX energy, and more. They have been discussed in the E&S Report for subscribers.

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The Matrix provides market-driven trend, cycles, and intermarket analysis.