One can sense that the mood has shifted solidly to the negative. Does this mean we should be contrarians and go against the grain? As they say, it takes bulls to make a bull market and if that is true, then on the flipside, it takes bears to make a bear market.
The market is actually a Ponzi scheme, and all our monies are based on nothing. If enough people come to this realization, then all true Ponzi’s collapse and quite instantly. We are not there yet at this point of realization. But someday I predict we will be.
I think, in all fairness, everyone agrees the current system is unsustainable. Therefore, the end logic is that it will manifest itself as such in a moment in time resulting in complete systemic failure and collapse. Everyone thinks they will be able to sense this coming moment and exit when they sense it. But the error is that if a mass realization of a failed system occurs all at once, as people typically do, the exits will be jammed. You will not be able to connect to your broker because the line will be busy. Or cut off completely. In the end game, the great panic will result in people being shutout. Everyone knows this to be true that has any sense of the market. Covid 2020 showed us what is in store.
The wave count is nicely bearish pointing to a swift decline. Am I wrong on the short-term squiggles? Or is it a Charlie Brown/Lucy with the football moment? All I know is that Jesus is coming back probably soon, and he hates the stock market. And it will be destroyed as it exists.
Therefore, I have God on my side in the end.
Junk debt is a good indicator of the overall state of risk appetite. And it seems to be impulsing back downward in solid fashion a long way from its frothy late 2021 peak.
Keeping an eye on China. The waves support a sharp negative mood movement. If it happens it actually means the mood has already shifted significantly negative. War can come as a result.
