Fade The Rally? Downside Episode Coming!
Here is a piece from our premium report we put out today. Just a little info on my partner Woody Dorsey. He has been a pioneer with investor psychology and sentiment. He is considered by many on Wall Street as one of the best market timers in the world and he has been publishing his institutional newsletter to some of the largest financial institutions in the world for 40 years.
These sentiment cycles repeat month in and month out on both an short term within an intermediate term basis. We hit a short term "somewhat" extreme bearish sentiment reading on Monday 8% bullish sentiment as the spx was running right into a longer term target I had from my 1942 short entry (2720) That was enough to get the bulls active on Tuesday and then we had the Fed throw some fuel on the rally with right cut talks. The intermediate term sentiment is still in the higher end of the cycle, but after Tuesday/Wednesday's rally, short term sentiment has move back to extreme bullish sentiment reading 91% bullish sentiment.
This was expected, but did last a little longer and a little higher than anticipated, but that has not changed the intermediate term cycle which is lower. This was a suck up to lore in the bulls, wash out the bears and now we are heading into another important topping phase.
From today's report: The interim trend remains corrective. Stocks have still not had a viral release to the downside: “This is still a very unusual pattern and market moves can happen very quickly. I am waiting for a high volatility flush to the downside and extreme panic before covering the short bias. I really prefer that there be one one-day wonder to the upside to sell before a real release down.” Well we had that one day wonder and a bit of follow through. Fine, there is due to be another downside episode coming.
Things are going to get very interesting-and the sentiment cycles will hold true for this next round of selling--coming soon! Check out our links below to find out more about our premium service. G
These sentiment cycles repeat month in and month out on both an short term within an intermediate term basis. We hit a short term "somewhat" extreme bearish sentiment reading on Monday 8% bullish sentiment as the spx was running right into a longer term target I had from my 1942 short entry (2720) That was enough to get the bulls active on Tuesday and then we had the Fed throw some fuel on the rally with right cut talks. The intermediate term sentiment is still in the higher end of the cycle, but after Tuesday/Wednesday's rally, short term sentiment has move back to extreme bullish sentiment reading 91% bullish sentiment.
This was expected, but did last a little longer and a little higher than anticipated, but that has not changed the intermediate term cycle which is lower. This was a suck up to lore in the bulls, wash out the bears and now we are heading into another important topping phase.
From today's report: The interim trend remains corrective. Stocks have still not had a viral release to the downside: “This is still a very unusual pattern and market moves can happen very quickly. I am waiting for a high volatility flush to the downside and extreme panic before covering the short bias. I really prefer that there be one one-day wonder to the upside to sell before a real release down.” Well we had that one day wonder and a bit of follow through. Fine, there is due to be another downside episode coming.
Things are going to get very interesting-and the sentiment cycles will hold true for this next round of selling--coming soon! Check out our links below to find out more about our premium service. G
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