[newsletterchapter2 title=”GENERAL MARKET COMMENTS”] The BABA Reversal was the Tell as I allowed. Recent dramatic weakness is typical of a viral cascade of negatives which usually culminates in a Capitulation. Extreme low Sentiment does not, by itself identify a bottom. Timing patterns and cognitive conditions are equally important. This looks more like a “Cry the Dip,” than a “Buy the Dip!” Investors may be unduly shocked unless they had a clue.
Talking Heads are shaking their Heads but they do not want to know what they do not know. Who knew there was a cogent profile for a 9/19 High and that a Black Hole was due near 10/13? Someone did. The mass market believes that fundamental stories and rationality rule. They don’t. Markets are really influenced by the changing vibrations of energy patterns. Markets are ruled by esoteric nominal indicants rather than phenomenal fundamental tales.