Roebear. That article is important IMHO
A good primer for what's yet to come in this Bear Market. Right now, IMO, we're still in the 2nd of the 3 major down waves.
So, for fun, let's call todays rap...a tale from the ghost of Xmas (market) future. And, for Chihuahua's in pink tutus?(g) It'll be, "Who you gonna call" time.
My experience with Bear Markets has taught me that the final big leg down, the real "no mas", capitulation city, 3rd leg washout completes the market machines harvesting of "the coppertops"(ggg). It's when a lot of Chihuahua's actually fall into "The End of Days Breakfast Blender, LOL.
ONE of the salient features of this final leg down in every Bear Market is the FORCED LIQUIDATION by mutual funds that your article brings up. Once it really kicks in, it's a vicious circle of selling> redemptions> more selling.
But NO. We've not gotten to that, yet. I'm convinced we're still in the 2nd wave down, with a good tradable Intermediate Term rally beginning in the weeks ahead. We are probing for a base from which to launch it right now.
Anyway, during that final killer down leg, investors who talked tough and defiantly during the early stages of the Bear? Surprise! We discover they don't have the stomach to walk the walk (OR in a some cases another house to remortgage to feed the ego and hold onto that dwindling margin account. lol).
Then finally...
Chung, chung, chop, chop....in the blender they go.
When we start hearing comments like "I'll NEVER buy another stock" THEN we'll be at THE bottom and the final no mas leg # 3 will be done.
But my read is we have a ways to go in both price and time before that. Sept/Oct, at the EARLIEST, IMHO. So lot's of torture time to go between now and then, as Mr Market breaks the will of the guys who think their balls are so big they need a wheel barrow to carry em around. roflmao
All JMVVHO, of course.
But I've seen it all several times before. Only the names change. Human behavior never does. And it's human emotion NOT fundamentals that drive the market to profitable extremes for the relative few who understand it.
Best regards
Iso |
