Woody Dorsey Research: 5/22/19

TIME IS RUNNING OUT!! Woody Dorsey Has Predicted The Last 3 Stock Market Crashes-Weeks In Advance. Why Is That Important? Because He Is Predicting Another Kill Zone Crash Is Coming soon!!

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05/22/19 Black Hole-Woody Dorsey

What is a Black Hole?

A Black Hole is a defined time period when extreme market events may take place in a very short period of time. I invented this term based on 40 years of studying markets and psychology. It is an advance in the field of Behavioral Economics. It is beyond the scope of current Rational Market theory. In Efficient Markets it should never happen and there should be no way to anticipate such events…..but. Human Beings, Teenagers, Investors and Markets do freak out once in a while. We generally don’t like to talk about it. Human Nature is Market Nature and it isn’t always pretty. Black Holes are specific negative stock market patterns.

Keynes and the General Theory of Market Prana

The most interesting ideas may never be published. You can’t always google the real story. Maynard Keynes, the eponymous British economist, is not so well known for his suggestion that “Animal Spirits” lay at the core of all economic behavior. Why do Humans and Markets behave the way they do? It is the Energy. Follow the Money may really mean follow the Energy. The original term for Energy is Prana. It is the Market Energy or the Market Prana which influences Market buying and selling. I know you don’t know what I am talking about. It is not Rational but markets are not really Rational either. Certain Stock Market setups produce a specific Prana which induces a Black Hole. Okay this may really seem like a lot of inside baseball for most folks who assumed they were well aware of the rules of the game but that is where my research has taken me. The Psyche, the Animal Spirits, the Market Prana are the real prime movers of Markets. I invented the term Black Hole but the Energy already existed.

Some may surmise that my discovery of Black Holes proves market timing which in turn proves Behavioral Finance which in turn disproves Rational markets. You may be the judge. No one should have expected a rally from Xmas. I did. No one should have thought it might end near now. I did. No one should be able to expect the relative timing of any “risk off” episodes. I do. Market timing is far from an exact science. There are no absolute systems or waves. There may be principles. Sometimes there are indicants for those who listen over a long time. Maybe we need to ignore our ignorance and embrace our extant inner non-rational knowledge.

Goodbye Golden Halo

When the illusions are stripped away in the market or in the human being, reality becomes revealed. But usually not for very long. The psychological mask of composure is donned again quite quickly and everything is explained away. Ask any pundit to explain what has already happened in the market. The News Knows the Past (ask FOX) but not, the Future. Now, there are different orders of Black Holes and sometimes there is a series of them. The typical psychological sequence which I have discovered is for a period of bullish complacency (Golden Halo) to resolve into a Kill Zone set up which, when triggered resolves into a decline into a Black Hole.

Redaction’s Required until Kill Zone Trigger

When is the first Black Hole due? Sure I already know that. I have for some time. After all I invented the term and rediscovered the indicator. But until full access is permitted by Mr. Barr, it will have to remain redacted. People are overly Greedy. They Gossip. They Obsess. Human Beings are habitually abusive of information. Well, the Golden Halo is over for sure but while the Kill Zone trigger is fingered, it has not been pressed. It requires an acute market release which may happen relatively soon. I will provide a schematic of that market situation to the faithful in due time. Meanwhile all you need to really know is that it is looming. There are multiple Black Holes coming. Keep it Simple. Most importantly and first off, don’t be going all in on the long side. You know what you need to know.

Black Swans are Easy

One of the most notable Black Holes which I, and some of you, witnessed, was in October of 1987. History never repeats but it always informs. The key point is that 10/19/87 was an extreme Black Hole and it not last very long at all. So never expect the media, or anyone, to explain what is happening in any timely or useful manner. A Black Hole may be anticipated and it happens pretty fast. Don’t be confused by the concept of a Black Swan. That is a market metaphor for a surprising event which may alter existing economic paradigms at some point in time. In short, Black Swans are the province of market philosophers who surmise that unexpectedly bad things are indeed going to happen sometime. Indeed they do but it may take years or even decades. Black Swan events belong in the realm of “Big Picture” thinking which is not necessarily useful and may even be deleterious to active market participants. Black Hole phenomena on the contrary are never subtle and are very timely. They may be compound events, as this one appears to be. Again the Black Swan preposition speaks to something that might happen sometime. A Black Hole has specific timing. If this one does not manifest, so be it. This Black Hole probability will not happen next year instead. It has a defined shelf life. It is not a philosophical theory.

Trading Futures

Forecasting the Future is incredibly popular but it is never easy. Still, Everybody does it. Everyone has an opinion about what their version of the future may be. We all accept the Present as Reality. Rightly so. However the Present is always changing into something else which we did not quite anticipate. But the Future is always different than now, most often in different ways than we expect. Everything that hasn’t happened yet always seems unrealistic. Yet we all make dangerous assumptions about the Future. Investors, are dominated by their belief systems. They believe but they do not know. Be aware that the Future can come up pretty quickly.

Black Holes are Beautiful

Black Holes expose the reality of the Psyche. That is healthy. Market and Human Rationality becomes revealed as unreal. When markets freak out, the “weak hands” get out of their longs. Thus a Black Hole provides some degree of a buying opportunity. So that is a good thing. If you want to play the game of just being a long term equity bull, you will outperform by simply becoming ultra-defensive for very short periods of time. But buy every big break no matter what the News is saying. Black Holes are Beautiful. A lesser understood feature of this phenomenon is that equities are not the only asset which may have a big move during a Black Hole. Look for potentially big moves in several markets. The amazing upshot of the 1987 stock market Low was that it provided the best Bond Market rally in history. Remember that? That was fun. Thus, several outside market opportunities may be looming. Yes, there is often collusion among indices. What exactly is going to happen with all of the related markets? I don’t know but nobody else does either. But at least I know it is about to happen. So, be prepared for anything in related markets when stocks correct. Enjoy Market Reality if you are listening. Markets are not Rational. A word to the wise is sufficient: Black Holes are Looming. Get Tuned. Stay Tuned. This is not the End of the World. Maybe Nothing will happen? Oh, it will happen. Who remembers 1987 anyway? There are no questions? Thank you, Woody Dorsey

Scales Of Sentiment: By Woody Dorsey The Media tells us that Market Timing can’t be done but, we all do it anyway. The Dorsey Market Sentiment is a Non-Rational tool which Diagnoses the Emotional Energy of Investors. I have been studying and measuring this for several decades. My unique metric is a missing link in the markets. Why? The Limbic, (Emotional) Brain is as important and older than the Neocortex (Rational) Brain. Investors may not really Know as much as they think they do! They just Believe in the most available Stories covered in the Media. It isn’t Fake News exactly but it is far from, Understanding. Rationality is a Ruse because it assumes that Fundamental Stories are the only “Way” to look at Markets. The third cognitive Brain, (Technicals,) is also important but is much more popularized. Sentiment is the most missing link in Markets. Lets look at several Scales of Sentiment in the Dorsey Market Sentiment. Timing is Everything but it isn’t Easy. Long Term Sentiment: By this measure, as you see, Sentiment registered unusual pessimism at Xmas and has been soaring. This infers Satiety & Complacency in Risk Appetite. Cautious Congestion may be called for.

Sentiment Timing Predictive Analytics Model–Nobody Else Can Do What This Does..They Don’t Have The Tools!!

What does predictive analytics means and how does it work? Sentiment Timings Predictive analytics model is comprised of investor sentiment-market timing turns dates and regular technical analysis. Woody Dorsey, who is considered by many on Wall Street, to be one of the best market timers in the world. He uses over 13 different market timing indicators to predict when the SPX is going to make a top or a bottom, weeks and sometimes months in advance.

You may have heard people talk about investor sentiment, but does anybody really know how to trade from it? The simple answer is NO! Or I should say, not many and the ones who understand how to use sentiment to enter or exit trades, will be the ones closing long positions at the top and moving their portfolio to the short side..and covering short positions at the lows and moving their portfolio to the long side. Sentiment Extremes will ALWAYS be seen at market tops and bottoms..as you can see in the sentiment chart below.

Sentiment Extremes Are Only A Conformation Tool..It Has To Be Combined With Turn Dates And Regular Technical Analysis! This One Of A Kind Combination Is Our Predictive Analytics Model

What does predictive analytics means and how does it work? Sentiment Timings Predictive analytics model is comprised of investor sentiment-market timing turns dates and regular technical analysis. Woody Dorsey, who is considered by many on Wall Street, to be one of the best market timers in the world.

TIME: Woody uses over 13 different market timing indicators to predict when the SPX is going to make a top or a bottom, weeks and sometimes months in advance.
SENTIMENT: Once we have the dates to look for a top/bottom, sentiment will give us the confirmation a turn is about to take place. Sentiment extremes will always take place at tops/bottoms.
TECHNICAL ANALYSIS: Once we have the Time and Sentiment in line for the reversal, our technical analysis determines where to look for price to reverse using wave counts, support/resistance pivots and divergences

Imagine Being Able To Know Exactly When The S&P 500 Is Going To Reverse..Weeks And Sometimes Months In Advance..What Could You Do With This Type Of Information? If It Seems To Good To Be True–Then See For Yourself..You Will Never Look At The Market The Same..I Promise You That!

Information is for paid subscribers & may not be copied or distributed. © Copyright 2018. The information contained herein was provided by Sentiment Timing and/or its publishers does not make any representation or warrant with regard hereto, including but not limited to those of accuracy, completeness, reliability, timeliness and/or infringement on the rights of third parties. This Publication expresses a view on the markets but is not intended to provide any specific recommendation to buy or sell any security. Investing is Uncertain and always carries Risk. Of Losses. Subscribers should always assess Market Risk parameters with their broker or financial adviser.

MARKET SUMMARY: I repeat form two days ago: “The interim trend has clearly been maturing. Sometimes, big trends begin with small steps. They can also be initiated with a collapse. You knew this market was on borrowed time. There was no reason to be nursing any significant long exposures. There still isn’t. This morning’s mini panic is an adumbration of things to come.” I also allowed that the Bulls might hold it together for a while longer. That was incorrect. This downside virulence speaks for itself. Still, it would be most typical of this pattern for a low of some time to occur near here and be followed by a hopeful “suck it up” recovery into dates are for members only

Trading Instrument (Gary Uses) My Trading Instruments are all based off of SPX numbers, but for long side trades I use (SSO) the 2x leveraged etf that follows the S&P 500 and when expecting the market to move lower, I use (SDS) the 2x leveraged etf that follows the S&P 500, it moves higher when spx moves lower.

TECHNICAL VIEW by Gary Dean: We are finally seeing the market coming back down to earth after the bulls bid up every little dip. Tops are always harder to pick than lows, as the bulls never want to leave the party until they are forced out. They are being forced out and everyone who had their exit strategy in place are now finding out the hard way, everyone else had the same strategy. There was always just one exit, but being hypnotized, they all thought this time was different. The one common theme that I have been saying, the wave structure was very mature and we could break down anywhere/anytime up here. The gaps above will most likely get filled, if history is our guide. That fits Woody’s profile of a bounce into the dates are for members only time period and then the real move lower hits.

In the chart below, I have a couple different road maps that could play out. I would NOT being looking to ad new short positions here and I would be more on the side of lowering stops and just let the market tell you when it is time to move to cash. For traders who want to give this move lower some room to play out, 2904/2908 would be the stop zone. More aggressive stops from the 2942 short entry would be 2880/2895. Really aggressive stops would be set at 2855. We don’t know how everyone trades, so I throw out different levels and you make your own decision. We may very well continue lower down to the 2810-ish area, but jumping short here with new positions is way to risky for me.

The bulls need to get the spx above the 2860 (bull/bear line) to even start some type of move higher. The new short term bull/bear line is at 2897 and if we see a move above that, I think they will continue higher and close some gaps above. There are no buy signals yet, which is suggesting we could still head lower before higher.

The bears have finally pushed the spx below the daily 50/dma and if selling continues, the 2770 may become a magnet. The longer term view in the chart below doesn’t mean they have to be hit on this move lower. They may, but getting short now for these targets is risky. Just manage open short positions. June is not that far away.

Summary: Keep an eye on 2860. If the bulls can push above that resistance level, it will be the earliest sign they are going to try and make a run higher. 2810 and 2770 are the next downside targets if we see this move lower turn viral. There are no buy signals on any charts, so maybe a bump higher and then another new low makes sense.

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Sentiment Timing’s Predictive Analytics Model

What does predictive analytics mean and how does it work? Sentiment Timings Predictive analytics model is comprised of investor sentiment-market timing turns dates and regular technical analysis. Woody Dorsey, who is considered by many on Wall Street, to be one of the best market timers in the world. He uses over 13 different market timing indicators to predict when the SPX is going to make a top or a bottom, weeks and sometimes months in advance.

Take A Look At Some Of Our Previous Calls-And Ask Yourself, What Could You Have Done With This Information?

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Have you heard About Investor Sentiment ?

You may have heard people talk about investor sentiment, but does anybody really know how to trade from it? The simple answer is NO! Or I should say, not many and the ones who understand how to use sentiment to enter or exit trades, will be the ones closing long positions at the top and moving their portfolio to the short side and covering short positions at the lows and moving their portfolio to the long side.

Sentiment Extremes will ALWAYS be seen at market tops and bottoms. As you can see in the sentiment chart

Our Predictive Analytics

Sentiment Extremes Are Only A Conformation Tool. It Has To Be Combined With Turn Dates And Regular Technical Analysis! This One Of A Kind Combination Is Our Predictive Analytics Model.

TIME: Woody uses over 13 different market timing indicators to predict when the SPX is going to make a top or a bottom, weeks and sometimes months in advance.
SENTIMENT: Once we have the dates to look for a top/bottom, sentiment will give us the confirmation a turn is about to take place. Sentiment extremes will always take place at tops/bottoms.
TECHNICAL ANALYSIS: Once we have the Time and Sentiment in line for the reversal, our technical analysis determines where to look for price to reverse using wave counts, support/resistance pivots and divergences

Imagine Being Able To Know Exactly When The S&P 500 Is Going To Reverse.Weeks And Sometimes Months In Advance. What Could You Do With This Type Of Information? If It Seems To Good To Be True–Then See For Yourself. You Will Never Look At The Market The Same. I Promise You That!