How Financial Media Sentiment Can Help You Time The Market

3/31/2016 – A mixed day with the Dow Jones down 31 points (-0.18%) and the Nasdaq up 0 points (+0.01%) 

What a difference a few weeks make. On February 10th, just a few hours prior to a February 11th bottom, I brought the following matter to your attention. Financial Media Predicts Armageddon – Time To Go Long?

At that time I suggested that everyone was extremely bearish, with not a single bullish data point to be found. Here is just a small sample of articles from that day alone.

• The U.S. May Be Even More Broke than You Think
• Shock slump across European industry bodes ill for 2016
• The head of trading at Morgan Stanley just confirmed Wall Street’s worst fear
• David Stockman: Markets Going to Be Mauled by Bear
• JP MORGAN STRATEGIST: Central banks tried to control the world … and failed miserably
• Companies lose billions buying back their own stock
• Cramer: Extreme valuations point to a recession

Now, flip the above headlines on their heads and you get a fairly accurate representation of where we are today. Let’s see what is trending out there today…..

• Tom Lee: Why I expect new stock records
• Why a volatile Q1 can be bullish news
• Get ready for this market to take flight thanks to tech stocks
• Cautious Yellen pushes back on Fed officials eyeing hike
• Trader: Listen to Yellen, ignore fundamentals
• ‘Dollar will fall faster than US stocks rise’

So, let’s review. The market rallies and all of a sudden Janet Yellen goes from zero to hero while all economic and financial imbalances that were so prevalent just a few weeks ago disappear into thin air???

Sheer nonsense…..all of it.

As I outlined in last night’s update (The Fundamental Shift That Did Not Happen), the fundamental picture hasn’t changed. If anything, it continues to deteriorate.

As a result, we should come to a simple conclusion. Financial media sentiment is nothing but a reflection of the market’s underlying state of being at any given moment. It shouldn’t be taken at its face value, but rather, as a TIMING tool.

When we see excessive bearishness, as was the case on February 10th, some sort of a bounce is just around the corner. And when the pendulum swings the other way, as is the case today, it is time to be cautious……very cautious.

This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2015-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years.  If you would be interested in learning when the bear market of 2015-2017 will start (to the day) and its internal composition, please CLICK HERE.

(***Please Note: A bear market might have started already, I am simply not disclosing this information. Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. March 31st, 2016  InvestWithAlex.com

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!