{"id":162222,"date":"2019-12-20T10:23:56","date_gmt":"2019-12-20T15:23:56","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=162222"},"modified":"2019-12-20T10:23:56","modified_gmt":"2019-12-20T15:23:56","slug":"who-said-traders-and-investor-are-emotional-right-now","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/12\/who-said-traders-and-investor-are-emotional-right-now\/","title":{"rendered":"Who Said Traders and Investor are Emotional Right Now?"},"content":{"rendered":"
December 20, 2019<\/div>
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By TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n

Nearing the end of 2019, our research team continues to attempt to dissect the market rally in an effort to present credible research and timely insights to skilled technical traders.\u00a0 We recently authored a research article discussing the potential that the US Stock market is less than 2.5% away from a major resistance level that could prompt a massive market top.\u00a0 You can read our research related to these Fibonacci Price Amplitude Arcs here<\/a><\/strong>.<\/p>\n

This recent research leads us to revisit the recent blow-off rotation in recent markets.\u00a0 The typical market cycle moves from through these cycles Stealth Phase, the Awareness Phase, the Mania Phase and finally to the Blow-Off Phase.\u00a0 The Stealth Phase is where the smart money pours into the market taking advantage of undervalued assets\/equities.\u00a0 The Awareness phase is where more traditional and retail investors pile into assets that have formed traditional bottom formation and started to rally.\u00a0 The Mania Phase is when enthusiasm and greed take over and when the market moves higher in a parabolic price mode \u2013 ultimately reaching a massive top.\u00a0 Then, we start the Blow-Off Phase which usually starts with a deep \u201cR\u201d type price rotation \u2013 followed by extended selling.<\/p>\n

Before you continue, take a couple of seconds and join\u00a0<\/em>our free trend signals email list here<\/em><\/strong><\/a>.<\/em><\/strong><\/p>\n

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\nSource: Dr. Jean-Paul Rodrigue Dept. of Global Studies & Geography Hofstra University<\/figcaption><\/figure>\n<\/div>\n

We\u2019ve seen these types of market phases play out over the past 20+ years multiple times.\u00a0 The DOTCOM market breakdown, the 2009 Credit Market Crisis, and the 2017 BITCOIN breakdown.\u00a0 One of the clearest examples in history was the 1929 Stock Market Crash.<\/p>\n

The effort of our research team is to highlight the recent rally mode in the US stock market after the 2018 US Stock Market rotation (January 2018 and August 2018).\u00a0 If you pay very close attention to the details of these actual price rotations in the examples below, you\u2019ll notice that every ultimate peak happened after a period of moderately deep price rotation and an extended upside price rally (an exhaustion rally).\u00a0 In every example, this rotation setup the exhaustion rally which ultimately set up the massive price peak\/top.<\/p>

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Source: Dr. Jean-Paul Rodrigue Dept. of Global Studies & Geography Hofstra University
\nCole Garner: https:\/\/medium.com\/hackernoon\/marketcycle-4e5407d0c68<\/a><\/figcaption><\/figure>\n<\/div>\n

We believe the rotation in the US stock market in 2018 exhibited the exact same price setup and the current upside price rally is the exhaustion rally that will ultimately set up a massive price peak\/top.\u00a0 We\u2019ve highlighted our research team\u2019s expectations in the S&P500 chart below.<\/p>\n

The fact that this potential price peak aligns with our GREEN Fibonacci price amplitude arc presents another clear example that massive resistance exists near 3200 in the S&P.\u00a0 The phases of the extended market rally, lasting just over 10 years now, align nearly perfectly with the previous examples of major market tops and a Blow-Off Phase.<\/p>\n

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Our research team believes the resistance level near 3200 on the S&P will likely result in a downside price rotation setting up an \u201cR\u201d type price move.\u00a0 Once this completes, a Blow-Off phase could begin rather quickly.\u00a0 We believe the expansion of the markets has reached a point well past a euphoric phase and the rotation in 2018 setup the perfect exhaustion rally phase.\u00a0 We believe it is just a matter of time at this point before the Blow-Off phase begins.<\/p>\n

We would be surprised if the S&P rallied far beyond the 3200 price level before setting up the \u201cR\u201d price rotation.\u00a0 We believe the first 3 to 5 months of 2020 will create the \u201cR\u201d price setup before broader market concerns take hold \u2013 potentially bursting investor enthusiasm.<\/p>\n

All this could be the start of\u00a0the next real estate crash we explain<\/a><\/strong>\u00a0here.<\/p>\n

Don\u2019t miss these next moves in the markets.\u00a0 Our research goes beyond traditional types of analysis and our research team is dedicated to helping you protect your assets and wealth.<\/p>\n

In short, rotations in ETFs, such as this potential move in WOOD, will continue to set up and rotate throughout the 2020 election event and beyond we\u2019ll keep you informed as this plays out with\u00a0Wealth Building & Global Financial Reset Newsletter<\/a><\/strong>. Join us with the 1 or 2-year subscription to lock in the lowest rate possible and ride my coattails as I navigate these financial markets and build wealth while others lose nearly everything they own during the next financial crisis. Get a Free 1oz Silver Round or Gold Bar Shipped To You as a Bonus!<\/p>\n

As a technical analysis and trader since 1997, I have been through a few bull\/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities are massive\/life-changing if handled properly.<\/p>\n

Chris Vermeulen
\nFounder of Technical Traders Ltd.<\/p>\n

TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

By TheTechnicalTraders.com Nearing the end of 2019, our research team continues to attempt to dissect the market rally in an effort to present credible research and timely insights to skilled technical traders.\u00a0 We recently authored a research article discussing the potential that the US Stock market is less than 2.5% away from a major resistance […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-162222","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/162222","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=162222"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/162222\/revisions"}],"predecessor-version":[{"id":162227,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/162222\/revisions\/162227"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=162222"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=162222"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=162222"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}