Mr. Market Wants More
One week ago
, I reported the Market Psyche was suggesting a 75- to 125-point S&P rally. That did occur - though it ended abruptly with last night's new high. Psyche based her upside on the rare 0% bullish daily sentiment readings (shown below), and the temporary use of the Geithner symbol. But now she and Mr. Market want more. They want more of a bottom. They want a better set up to buy into. As a result, they are taking the S&Ps down again. 10 More Correcting Days Until Christmas
Christmas is a symbol of good times and good things coming to us. The stock market Christmas is coming in 10 days. Can you wait until that Christmas to buy? Who's the 90-pound eunuch in the room? The eunuch is hidden in Mr. Market’s boudoir. He's eavesdropping on Psyche. He can’t hear how much the market is going to decline, only that she wants a 10-day correction. S&P 500 and Market Semiotics Sentiment
Markets are always irrational. That is, they are always emotional….just like human beings. Note how bullish investors became last week. You can almost see Psyche at work. Mr. Market doesn't usually like to be easy. A Quantum of Downside
The forecast for a quantum of upside last week is over. Now, there will be a quantum of downside. Psyche has declined to propose any price magnitudes for this correction. But she was willing to give us almost exactly 10 more days of declines before a Christmas of equity value. Why? How? We want to have the market explained. Psyche never explains the market. Just keep watching the TV. They will rationalize it for us.
Mr. Market has a mistress, and her name is Psyche. They want more of a bottom, so they're taking stocks down again.
Mr. Market approved this message.
No positions in stocks mentioned.
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