"Watch out for emergencies. They are your big chance." ~ Fritz Reiner
Over the past few weeks, the number of individuals in the neutral camp rose, as did the number of bulls, and only the number of bears experienced a drop. When we combine the neutrals and the bears, the total is 72%, and that tells us that the sentiment is still too negative for a crash.
The level of negative news continues to pile up as we expected; the Fed is priming up the crowd for a reversal. Just a few months ago, these guys were busy proclaiming that all was well, now they are ready to pull another fast one. It is amazing how gullible the masses are, and these top players have no respect for the masses. They view them as cannon fodder; they use the same old strategy over and over again, and the masses are none the wiser.
A look at some of the recent comical oops we mean serious headlines making waves
Recession sign is in play and has 81% accuracy
Yield curve recession indicator sends warning on US economy
David Levy Forecasts a Global Recession in 2016
U.S. economy hits soft patch in fourth quarter as inventories, trade weigh
Why 2016 keeps getting uglier for US economy
"We Are In A Recession": Dallas Fed Respondents Admit The U.S. Economy Is In Freefall
Will America's economy get dragged into recession?
The trend quite clearly illustrates that misery loves company and until misery hates company the masses will always lose. The Fed's are masters of mass psychology, and mass psychology trumps all other analysis, for it reveals up to what limit you can push the masses. Emotions are the main driving force for 99% of the populace; hence, if you understand mass psychology, you understand the main driving force behind the mass mindset. This is why the Fed can and will push the envelope to the outer limits. ~ Market Update Feb 17, 2016
Notice how misery loves company, Google "US economy in trouble, or US economy facing a recession" or any other negative topic and you will find a plethora of new articles being pushed out almost on a daily basis. The consensus is for the economy to pull back and consequently for the markets to tank. The economy could sputter, but the markets will not tank as everyone is leaning towards that direction. Everyone usually knows next to nothing when it comes to the market. Unless the trend turns negative, you should not give two hoots to the doom scenarios these highly paid clowns come up with.
While the spin doctors scream of a day of reckoning, we think of what a day without them would feel like. These spin doctors are nothing but parasites, sucking the energy out of normal individuals with their dribble. The world will end one day; you will die one day and blah-blah. Who cares about one day? You have today; all you control is this moment. Focus on the moment and seize it, instead of trying to plan for a moment in the future you have absolutely no control off. To understand the future, you need to understand what is taking place right now. In one second right now will become the past and the next second will become the present. Focussing on the present gives you the chance to not only shape the past but the future. To get a glimpse of what the future holds, in general, all you need to do is look at the masses. What has changed, the same con is still being pulled on the crowd; crap is wrapped up and marketed as Gold and the masses drop everything to buy this new wonderful product. The outfits and players have changed, but the theme is the same, its ground hogs day almost every day when it comes to the financial markets. Nothing has changed, and nothing will change for those who embrace the mass mindset.
Throughout this entire correction or crash as many naysayers would have you believe, we have stuck to the same theme; the stronger the pull back, the greater the buying opportunity. We also stated that the Fed would be forced to change its stance on rate hikes and eventually it would have to join the negative interest rates club. Nothing has changed, strong pullback should still be viewed as buying opportunities. However as we live in such uncertain times, it would be prudent to add some Gold and Silver bullion to your portfolio. Think of it as insurance against some unforeseen event. You don't buy disaster insurance because you are expecting a disaster; you purchase it so that you are covered in case disaster strikes.
"A great calamity is as old as the trilobites an hour after it has happened." ~ Oliver Wendell Holmes