Semiconductor Industry News

Semiconductor Industry News

Semiconductor Industry News: Key Technical Developments

In each case, from an extended point of view, when the SOX found itself trading within these boundaries, it proved to be a brilliant long-term investment. A proper turnaround is near when our secondary indicator (MACD 2) drops below three on the lower panel. In at least one event (as shown by this very chart), the mentioned indicator hit rock bottom and failed to complete its entire cycle. However, this unexpectedly turned into an even greater opportunity.

Whenever a time-tested indicator struggles to complete its full cycle (meaning from the lows of oversold to the highs of overbought, and vice versa), the following move in the same direction tends to be twice as strong. Currently, our primary measure (MACD1) has fallen from an extremely overbought state to an almost ridiculously oversold condition. The most severe reading was -4.93 in October 2002, and our current figure is a negative 3.5. We speculate that it may well reach -6, and should this prediction come true, it would create a “screaming buy” opportunity.

Bullish Perspectives and SOX Predictions

The highly overbought reading (around January 2022) is totally bullish from a long-term viewpoint, as it suggests that MACD1 values will likely climb to new heights, in turn leading to new peaks for the SOX. We reckon that the SOX will triple before the next bull’s final act.

Without semiconductors, artificial intelligence is nothing but a pipe dream. Every sector connected to this market is destined to trend higher – the designers, manufacturers, and suppliers of the raw materials necessary to fuel this growing sector, and so on. For example, without Neon Gas, this very sector would be rendered useless.

Semiconductor Industry News: The Real news is the Supertrend

Significant wealth is gained by sticking to the super-trend, rather than constantly checking one’s portfolio. The upward phase of a super-trend cycle lasts much longer than its downward counterpart. A whopping 90% focus on the latter phase. We made a tidy sum from the companies in which we invested before the recent market correction – and these were not just paper profits, but gains we actually banked. The markets are currently going through a cleansing phase. Once this comes to an end, the era of massive profits shall start all over again.

Monthly Chart of the SOX via ETF SOXX

Monthly Chart of the SOX via ETF SOXX

Adjusting the MACDs: A Method to the Madness

The settings on the MACDs here (first indicator) differ from those employed on the initial chart. One might ponder the rationale behind employing disparate values. While we have broached this subject numerous times over the years, allow us to provide a hint: there is, indeed, more than one way to skin a cat. In this particular chart, the MACDs are trading at a fresh nadir. Although this ETF is not as venerable as the SOX index, it aptly illustrates the incredible opportunity this sector shall furnish for the astute.

RSI and Support Zones: Identifying Opportunities

The RSI is also trading in the highly oversold realms. A robust zone of support exists in the 280 to 291 range, with solid support found within the 255 to 267 range. A test of these levels, or lower, would constitute a screaming buy. Should a fortuitous event transpire, with the ETF plummeting to the 222 to 237 range, it would be akin to a “back up the truck” moment.

A Brewing Opportunity in Semiconductors and A.I.

In summary, a colossal opportunity is fermenting in the Semiconductor and A.I. sector, potentially overshadowing any other semiconductor industry news. While news may tantalise the ears, it is the mastery of playing the trend that can truly enrich one’s bank account. Remain vigilant and astute, dear investor, for these burgeoning markets could provide unparalleled rewards for those who seize the opportunities that lie ahead.

Basics of stock market Trading: Your Guide

Basics of stock market

Basics of stock market: Identifying extremes

Headline: A new era in stock market trading is upon us, and it requires a modified contrarian approach to navigate. The key lies in identifying extremes and exercising caution during market downturns. However, the Federal Reserve’s recent actions have highlighted the incompetence of its chairman, Jerome Powell, making it clear that the political system needs a drastic overhaul.

Market technicians, contrarians, the average Joe, and value investors alike will find themselves confounded by the new market system. In this era, anything goes, and volume and indicators will no longer provide an accurate outlook. Both fundamental and technical analysis methods will no longer be as effective, or perhaps even ineffective.

To navigate this new era, one must become a modified contrarian or market technician. Instead of relying on the masses jumping in as a signal to jump out, one must analyze the speed at which they are jumping in, the number of individuals jumping in compared to the volume that was dormant just a few months prior, and their staying power, among other factors.

 

Exercise caution during market downturns: a calculated approach

In light of the current market trends and the psychology of market participants, it is becoming increasingly apparent that the markets may soon test the lows witnessed back in 2022, and at least one index could trade to new lows. As tempting as it may be to jump into the market during a downturn, the current situation requires a more calculated approach.

However, the Federal Reserve’s chairman, Jerome Powell, has highlighted the incompetence of the political system, particularly during his psychotic helicopter money phase during the COVID crisis. To make matters worse, Powell even had the audacity to declare that a bit of inflation was good, and now he wants to battle the monster he created.

 

 

The Basics of Stock Market: Powell’s Incompetence

Verily, Powell’s actions are a textbook example of why one should never let someone with no experience run the Fed. His complete lack of understanding of basic economic principles is astounding. It seems he has no idea how inflation works or how it impacts the economy, and his erratic behaviour is making things worse for everyone. The fact that Powell is still in his position, despite his incompetence, is a damning indictment of the entire political system. He has no idea what he’s doing, yet he’s still in charge of the most important financial institution in the world. It’s time for him to step down and make way for someone who actually knows what they’re doing.

However, let us not forget that the stock market is a fickle mistress, and one must tread carefully when making bold statements. While Powell’s actions may seem misguided, it is important to remember that the stock market is not a simple beast. It is a complex system that is influenced by a multitude of factors, and one cannot simply blame Powell for all its woes.

That being said, it is clear that Powell’s actions have had a negative impact on the economy. By pushing so much money into the system after the COVID crash and then trying to destroy inflation after creating it, he has caused companies to fire people and could potentially lead to a recession. It’s time for him to step down and make way for someone who actually knows what they’re doing.

In conclusion, while Powell’s incompetence is a cause for concern, we must also remember that the stock market is a complex system that cannot be easily controlled. However, it is clear that Powell’s actions have had a negative impact on the economy, and it’s time for him to step down and make way for someone who actually knows what they’re doing.

 

 

Brainwashing vs Indoctrination: The Mass Psychology perspective

Brainwashing

Introduction on Brainwashing

The manipulation of an individual’s beliefs and perceptions has been a topic of interest for centuries, and has been referred to as both brainwashing and indoctrination. While the terms are often used interchangeably, they hold distinct meanings that are crucial to understand in the context of mass psychology. Brainwashing is defined as a systematic process of imposing a new set of beliefs and values on an individual through repeated persuasion, whereas indoctrination refers to a less intensive form of socialization that focuses on the transmission of cultural or ideological norms.

Mass Psychology and the Shaping of Beliefs and Perceptions

In exploring the difference between brainwashing and indoctrination, it is important to examine the role that mass psychology plays in shaping our beliefs and perceptions. The concept of mass psychology refers to the way in which large groups of people can be influenced and manipulated through various psychological tactics. From propaganda to media manipulation, the power of mass psychology has been demonstrated throughout history, and its impact on shaping our beliefs and perceptions cannot be overstated.

Michel de Montaigne’s Philosophy on Beliefs and Perceptions

Michel de Montaigne, a French philosopher of the Renaissance period, was a keen observer of human nature and provided insights into the nature of beliefs and perceptions. He believed that our beliefs and perceptions are shaped by a combination of individual experience, social and cultural conditioning, and the influence of others. He argued that the mind is constantly in flux, and that our beliefs and perceptions are never fixed or certain.

Brainwashing and Indoctrination: A Distinction in Intensity and Coercion

When it comes to the distinction between brainwashing and indoctrination, the key difference lies in the level of intensity and coercion involved. Brainwashing is a systematic and intensive process that involves the use of psychological tactics to impose a new set of beliefs and values on an individual, whereas indoctrination is a less intensive form of socialization that focuses on the transmission of cultural or ideological norms. The power of brainwashing lies in the repeated persuasion and reinforcement of the new beliefs and values, which can result in a complete transformation of the individual’s beliefs and values.

Concluding thoughts

The distinction between brainwashing and indoctrination is crucial to understanding the impact that mass psychology has on shaping our beliefs and perceptions. Both concepts are important to understand in the context of Michel de Montaigne’s philosophy, which emphasizes the role that individual experience, social and cultural conditioning, and the influence of others play in shaping our beliefs and perceptions. By recognizing and understanding these tactics, we can protect ourselves from.

Investing for Beginners: A Wealth Management Guide

Investing for Beginners: A Wealth Management Guide

Investing for Beginners: A Guide to Wealth Management for Financial Success

If you’re looking to build and preserve your wealth over time, then wealth management is a critical component of your financial planning. Managing your investments, insurance policies, real estate, and other assets is essential to achieving your long-term financial goals. In this comprehensive guide to wealth management, we’ll explore everything you need to know, including financial planning, retirement planning, investments, risk management, and the role of financial advisors.

Why Wealth Management is Important for Beginner Investors

Wealth management is essential for beginners looking to achieve financial success over the long term. Without a sound wealth management strategy, you risk losing your hard-earned wealth, whether through poor investment decisions, unforeseen events, or other factors outside your control. With effective wealth management, you can retire comfortably, pay for your children’s education, or leave a legacy for your loved ones.

Different Types of Investments for Wealth Management

Investing is a crucial part of wealth management, but there are many different types of investments to consider. Conservative investments, such as bonds and mutual funds, offer lower risk, while riskier investments like stocks and alternative investments offer higher returns. Finding the right balance between risk and return is crucial for achieving your financial goals.

How to Create a Financial Plan for Retirement

Retirement planning is an essential part of wealth management. A well-crafted retirement plan can help you achieve your financial goals and ensure a comfortable retirement. In this section, we’ll explore the steps involved in creating a financial plan for retirement, including setting retirement goals, estimating retirement expenses, determining retirement income sources, and more.

Tips for Managing Investment Risk

Investment risk is an inherent part of wealth management, but it can be managed effectively with the right strategies. In this section, we’ll explore some tips for managing investment risk, including diversification, asset allocation, and assessing your risk tolerance. By managing investment risk effectively, you can reduce the likelihood of losing your wealth and achieve your financial goals more effectively.

The Role of Financial Advisors in Wealth Management

Financial advisors play a crucial role in wealth management. They can help you create a comprehensive financial plan, choose the right investments, manage investment risk, and more. In this section, we’ll explore the role of financial advisors in wealth management and what you need to know to find the right advisor for your needs.

Investing for Retirement: A Guide to Wealth Management for the Future

Investing for retirement is a critical component of wealth management. In this section, we’ll explore the steps involved in investing for retirement, including setting retirement goals, choosing the right investments, managing investment risk, and more. By investing for retirement effectively, you can achieve your financial goals and ensure a comfortable retirement.

Understanding Investment Risk: Tips for Managing Risk in Wealth Management

Investment risk is a critical component of wealth management, but it can be managed effectively with the right strategies. In this section, we’ll explore some tips for managing investment risk, including diversification, asset allocation, and assessing your risk tolerance. By managing investment risk effectively, you can reduce the likelihood of losing your wealth and achieve your financial goals more effectively.

How to Manage Your Wealth: Tips and Strategies for Successful Investing

Managing your wealth effectively is critical to achieving your financial goals. This section will explore some tips and strategies for successful investing, including setting financial goals, choosing the right investments, managing investment risk, and more. By managing your wealth effectively, you can achieve financial security and peace of mind.

 

What is saying the Nasdaq monthly chart?

Nasdaq monthly chart?

According to the Market Update from September 11, 2022, it was projected that if the markets followed a certain path, a test of the 9,900 to 10,500 range would potentially mark a bottom. This projection was based on the assumption that the markets would follow a pattern similar to that seen in 1973-74. If this were to occur, it would present a potentially significant opportunity for tactical investors to enter the market.

It is important to note that this projection was based on speculation and was not a guarantee of future market performance. It is not uncommon for markets to experience fluctuations and volatility, and it is important for investors to carefully research and evaluate any potential investment opportunities.

In November of 2022, the Nasdaq experienced two strong rallies, which may have set the stage for a test of the 12,300 to 12,600 range. If the Nasdaq is able to close at or above 12,600, it may pave the way for the market to reach or surpass its August highs. However, it is important to note that the future performance of the markets is always uncertain and that it is important for investors to carefully consider the risks and potential outcomes of any investment decisions.

In the August 27, 2022 Market Update, it was noted that the Dow had lost a relatively small amount of value, shedding less than 700 points since the previous update. At that time, the Dow was trading around 32,800, and it was suggested that risk-takers might consider opening long positions in the market.

In the August 2, 2022 Market Update, it was stated that the markets were entering a corrective phase and that the SPX had reached short-term targets. It was also noted that former support points had turned into resistance, which could potentially turn into zones of support again on a short-term basis. It was suggested that the market might experience a pullback to the range of 3960 to 4020, with a possibility of overshooting as low as 3870.

In the September 11, 2022 Market Update, it was reported that the markets had traded as low as 3,886, falling below the low end of the suggested range by roughly 70 points. However, it was also noted that the markets were likely to continue rallying as the selling pressure was easing, bearish readings were high, the masses were uncertain, and the dollar was close to reaching a short-term top.

In the same update, it was suggested that risk-takers should continue holding their positions until the Dow tests the range of 33,600 to 34,000 and the Nasdaq trades to 13,500. At that point, it was suggested that all higher-risk positions should be closed, though it was noted that investors could modify this trade to fit their own trading style.

Investment opportunities

 

Investment opportunities

RGLD is a gold stock that has proven to be a good investment opportunity even during market crashes. By simply buying and holding this stock, an investor could have seen significant gains. In fact, the profits from RGLD began to surge after 2011, which was when the Federal Reserve started to print more money. This shows that the recovery period between market booms and busts is now about 5 times faster than it was in 2009.

However, using a more advanced strategy such as analyzing long-term charts (monthly charts) can lead to even greater returns. By using these charts to determine when to buy and sell, an investor could potentially double their returns. For example, an investor could use monthly charts to enter and exit the market while the trend is still positive. Experienced traders could take this strategy a step further by using weekly charts to make more frequent trades within the overall trend determined by the monthly chart. This strategy involves selling when the stock is trading in the overbought range and repurchasing when it moves into the oversold range. It is important to note that this advanced strategy should only be attempted by traders with some knowledge of technical analysis.

Overall, the lesson here is that by remaining calm and not giving in to fear, an investor can achieve outstanding gains over the long term. History has shown that this is possible, even during times of market volatility. It is especially important to be aware of the narratives being created by top players in the market, as they may try to prematurely create the illusion that the bull market is dead forever. These players have significant financial power, and they may continue to manipulate the market in this way with increasing frequency. It is crucial for investors to prepare themselves psychologically for these tactics in order to avoid potential losses.

It is important to note that the information provided in the statement is purely speculative and not based on factual evidence. The statement suggests that some large players in the market intentionally create disasters or crashes in order to profit from the fear and panic of others. It is not clear how these players would be able to consistently create or predict market crashes, and it is not advisable to base investment decisions on speculation or conjecture.

It is never a good idea to blindly follow the strategies of others or to base investment decisions on speculation or conjecture. It is important to carefully research and evaluate any investment decisions and to consider the risks and potential outcomes. It is also important to diversify one’s investment portfolio and to seek professional financial advice before making any major investment decisions.

While it is true that the short-term outlook for the market may not always be favorable, it is important to consider the long-term potential for growth and to look for opportunities to invest in strong, reputable companies. It is possible that 2023 may present some challenges for investors, but it may also offer some fantastic opportunities for those who are astute and tactical in their approach. It is important to carefully consider the risks and potential outcomes of any investment and to make informed decisions based on thorough research and analysis.

Table press table 2

Symb.Entry D.Entry P.Current P.Exit P.Exit D.Comments
INTCMarch 202050.58#NAME?1/3rd at 46.50, 1/3rd at 52.00 and 1/3rd at 53.25, Very long-term play.
HAMarch 202120.05#NAME?1/3rd at 24.90 & 1/3rd at 15.20. Half the position was sold at 13.10.
AYXJuly 202168.42#NAME?1/3rd 83.87, 1/3rd at 68.60 and 1/3rd at 52.80. Half the position was sold in
February 23 at 69.90 for a small gain.
MGNIOct 202117.15#NAME?1/3rd at 26.04 1/3rd at 20.70 and 1/3rd at 16.35. Sold half in Jan at 10.60.
Bought ¼ in Jan at 9.40
ASANFeb 202245.0#NAME?¼ at 57.00, ¼ at 43.20 & ¼ at 34.80
FIVNFeb 22 & April 2377.35#NAME?¼ at 89.10 and ¼ 65.40
HIMXFeb 22
& April 23
8.28#NAME?3/8th at 9.02 and 3/16th at 6.80
VALEApril 22 & April 2314.36#NAME?¼ at 14.37, 1/8th at 15.50 and 1/8th at ¼ 13.65
AMNNov 22 & April 2393.25#NAME?1/5th at 104.10 and 1/5th at 82.10
VALE January 25
15.000 Call
April 20232.251.65!1/4th of a position
HLMay 235.55#NAME?¼ of a position
ECMay 20239.1#NAME?1/5th of a position
FSMMay 233.4#NAME?1/5th of a position

Trending Stocks 2020 and The Corona Virus Factor

Trending Stocks 2020

Trending Stocks 2020: Before we get into the meat of the article, let’s look at some of the statements we made over the past few weeks. These comments are being extracted from the market update service.

Put your personal feelings aside and understand this simple fact. No bull market has ever ended on a note of fear; it has always ended on a note of extreme joy. Market Update Jan 17, 2020

Since the inception of mass media, the idea has been to stampede the crowd or create a feeling of euphoria and both conditions are deadly when it comes to investing. However, the new ploy is to keep the masses agitated constantly or uncertain. Why would they do this? When someone is uncertain it takes longer for them to cling to a given viewpoint; they keep jumping from one camp to another, and that is one of the reasons why this bull market has lasted so long.

A sharp pullback is still an outcome we view through a very bullish lens. The ideal setup calls for the Dow to trade to the 28,800 to 29,000 ranges, with a possible overshoot to 29,300. After that, a nice sharp pullback would set the bedrock for a surge to and possibly well past 30k.  Market Update Dec 29, 2019

The best time to buy is when the masses are in a state of disarray, and this usually occurs when it looks like the markets are crashing. The masses are hardwired to view strong pullbacks as the start of a new crash, but most pullbacks are nothing but resting points; the markets use these stops to build up energy for the next upward leg.  Tactical Investors should hope that the market’s pullback strongly, for it provides them with a lovely opportunity to open long positions at a discount.

It is also one of the reasons why in general the small player is still sitting on the sidelines.  They still don’t know if they should jump in and buy or if shorting the markets is the right course of action; the longer they remain uncertain, the higher this market will trend. Market update Jan 7, 2020

One can immediately spot that the media takes delight in blowing anything out of proportion as it comes down to eyeballs and dollars. The more bombastic the headline, the more attention it will get, even if this attention is for a few minutes. In the end, we don’t have news today what we have is weaponized gossip.

Stock Trends and The Coronavirus Factor

The Coronavirus issue is going to be blown out of all proportions and it will be made to look like the mother of all pandemics. In fact, we are seeing individuals that are not qualified to make projections on the rate this virus will spread, stating that millions upon millions will be affected.

Now people are being checked with thermometers to see if their temp is above normal and an above-normal temperature has now become the litmus test for the Coronavirus; voodoo science at its best. This is one of the most retarded medical tests of all time, but no one seems to notice; a real-life depiction of “Pluto’s Allegory of the cave”.

CDC estimates that the burden of illness during the 2018–2019 season included an estimated 35.5 million people getting sick with influenza, 16.5 million people going to a health care provider for their illness, 490,600 hospitalizations, and 34,200 deaths from influenza (Table 1). The number of influenza-associated illnesses that occurred last season was similar to the estimated number of influenza-associated illnesses during the 2012–2013 influenza season when an estimated 34 million people had symptomatic influenza illness6. http://bit.ly/2UMJjMG

In comparison to the flu virus, the Coronavirus has caused a minimal amount of damage yet it has received 100X more coverage than the flu virus, which resulted in 34.200 deaths (and only US data is being used).

Worldwide, tobacco use causes more than 7 million deaths per year.2 If the pattern of smoking all over the globe doesn’t change, more than 8 million people a year will die from diseases related to tobacco use by 2030. http://bit.ly/2wcEl1s

Many of the masks that individuals are wearing are not that useful against viruses and even the masks that might provide protection need to be worn correctly. http://bit.ly/2HklQKB.  Other experts state that masks are useless as the virus is spread through the eyes. http://bit.ly/2SCjfkw

Stock Trends 2020 Conclusion

There is a 75% chance that the markets will experience at least one strong pullback this year, it would be foolhardy to attempt to predict the exact date though it would be ideal if this event took place during the  1st quarter.  Market Update Feb 20, 2020

This correction is taking place in the ideal timeline so it when it ends it will lead to a spectacular rally, those waiting for the crosswinds to subside will (as always) be left holding a can with rotting worms.

 The masses beg for an opportunity to buy stocks at a lower price when that opportunity arises the masses panic stating that they need to wait for things to get better before jumping in again. And so they wait, and when things finally get better, they notice that the price of everything they wanted to buy is higher than it was before and so starts the next stage of sorrow.

 

Notice anything odd above in terms of market sentiment. The markets have sold off, so one would expect bearish readings to soar north off 55. Instead, while they have risen, they are only at 41. What’s very interesting is that the number of individuals in the neutral camp is holding steady at 33 and this confirms that the masses are still uncertain, which means that the rebound from this correction will push the market to new highs.

This market has yet to experience the “feeding frenzy stage,” and we expect the action to be twice as powerful as the current downward action gripping the markets. We expect the Dow to experience upward moves ranging from 500 to 1000 points several times before the market even come close to hitting a massive long term top.  The needle on the anxiety gauge has swept deep into the hysteria zone extremely rapidly indicating the crowd is one stop from moving into a zone that until now, we did not create “the madness zone”. If the gauge moves into this zone, then we could end up having an event that will come to be known as the “father of all buying events.” 

Courtesy of Tactical Investor

 

 

7 Hot Stocks for 2020’s Big Trends

With 2019 coming to a close, it’s both a time to reflect and to ponder the future of hot stocks for 2020. If I had to summarize the markets this year in one word, it’d be China. Through much back-and-forth rhetoric, the U.S.-China trade war dominated the investment and political narrative. Unfortunately, based on recent presidential threats, this conflict could be with us for a while.

But if we finally get a substantive trade deal signed, one of the biggest catalysts for hot stocks for 2020 will be technology. Over the years, we’ve seen small upstarts disrupt long established markets. For the next few years, I’m going to go out on a limb and suggest that the old dogs will play new tricks. Specifically, the 5G rollout offers giant, well-resourced organizations a second wind.

Of course, forecasting the most profitable hot stocks for 2020 is a gargantuan task. Still, I think a reliable factor that you can trust is demographics. Although most countries undergo serious social change, arguably few nations are subject to dramatic paradigm shifts like the U.S. Particularly, the aging of two key demographic groups may offer substantial returns for the patient investor.

Lastly, evolving social mores and rising awareness will most likely impart political transitions. And that will invariably impact industries that depend on favorable public sentiment to catalyze growth. So, without further ado, here are my picks for seven hot stocks for 2020 to consider Full Story

 

20 of the Top Stocks to Buy in 2020

Before we get to the stocks, let’s acknowledge that these lists are tough.

Choosing the best stocks to buy today depends so much on your individual financial situation. To get a good read on where you stand, read our How to Invest Guide. It walks you through topics like establishing an emergency fund, asset allocation, when it makes sense to buy stocks, etc.

Now, onto the 20 stock ideas. Here’s the entire list, followed by the summary buy thesis for each one.

The Vanguard Total Stock Market ETF (NYSEMKT:VTI)
The Vanguard Total International Stock ETF (NASDAQ:VXUS)
Amazon.com (NASDAQ:AMZN)
Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL)
Facebook (NASDAQ:FB)
Intuitive Surgical (NASDAQ:ISRG)
Axon Enterprises (NASDAQ:AAXN)
AT&T (NYSE:T)
Verizon Communications (NYSE:VZ)
Ford Motor Company (NYSE:F)
General Motors Company (NYSE:GM)
ONEOK (NYSE:OKE)
TerraForm Power (NASDAQ:TERP)
Brookfield Infrastructure Partners L.P. (NYSE:BIP)
CareTrust REIT (NASDAQ:CTRE)
iRobot (NASDAQ:IRBT)
lululemon athletica (NASDAQ:LULU)
Wayfair (NYSE:W)
Netflix (NASDAQ:NFLX)
Constellation Brands (NYSE:STZ)
The first two are a bit of a cheat because they’re actually exchange-traded funds (ETFs). ETFs allow you broad exposure to a basket of stocks, and these two are some of the best low-cost index funds around:

US Stocks: The Vanguard Total Stock Market ETF
Foreign Stocks: The Vanguard Total International Stock ETF
The first ETF (VTI) gives you exposure to basically the entire U.S. stock market by investing in over 4,000 stocks. Full Story

What is mass hysteria and how it equates To Stock Market Opportunity?

What is mass hysteria

Mass Hysteria and the coronavirus

What is mass hysteria? A perfect example of the masses leaping before they look. in this instance, the crowd has not even bothered to examine the data closely. If they did they would have seen that the so-called experts are nothing but jackasses in disguise.

Long before this pandemic hit, we stated that central bankers, especially the Fed, was on a mission to take rates towards zero. Imagine if the Fed had lowered interest rates by 150 bases two weeks ago, how people would have reacted.  When the Fed cut rates before the coronavirus attack, experts were quick to label them as being reckless, but now after a 150 basis point cut, they say more has to be done. Notice the ploy here; to do that which the masses abhor, one has to create a situation that distracts their attention. Then offer a solution that is three times as damaging as the previous one and in their desperation to seek safety, they will agree to whatever course of action is laid out.

The system is going to be flooded with so much liquidity that the markets will melt upwards when the media starts to report the data more accurately.  Right now, they talk about the mortality rate without breaking the data down and informing the masses that older individuals are the ones that fall into the high-risk category. Even then, most of them appear to have some other complications already.

Updated mortality rate by age group and nothing much has changed

http://bit.ly/3aNsmpX

Notice how mild it is for those that are under 50, but let’s assume its 1.3%, no data is provided on whether these individuals had any existing conditions. So far, they are using stats to manipulate the data to suit whatever outcome they want to project onto the masses. A more robust approach (which would be relatively easy) would entail listing down any other conditions the patient might have had before becoming infected.

Furthermore, when you look at the data from countries that have sound health systems in place, the overall death rate is quite low. Take a look at Japan, Germany, Denmark, South Korea, Switzerland, Singapore, Taiwan, etc., the total death rate is well below 1.5 and in many cases below one per cent and that’s accounting for all age groups.  For example, Singapore so far as has zero deaths, Taiwan only has one, and so on.

Mass Media Operating from an Alternate reality

The media is pushing theories without all the data, and if you read almost all the stories you will see experts using words, such as may, could, might, but the masses treat these opinions as facts. Try to google the term “is the Coronavirus from the same family as the flu virus: “You won’t find any articles that answer the question directly in the top 10 search results. Instead, you will find a plethora of articles that go on describe how dangerous the new variant of the Coronavirus is. These articles were there before, but now they have been pushed to the bottom pages where no one bothers to look at.

The answer is simple, yes, it’s from the same family, but it’s a more virulent version.  After going through six pages of results, I could barely find a straight answer on Google that discussed only the Coronavirus as it relates to influenza. I had to use duckduckgo.com and only then was I able to find something of value on the first page, but after scrolling down the article in question was I able to find the following info:

Human coronavirus is pretty common throughout the world, according to the CDC. There are seven different types that scientists know of, and many of them cause colds, says infectious disease expert Amesh A. Adalja, M.D., senior scholar at the Johns Hopkins Center for Health Security. However, two newer types—MERS-CoV and SARS-CoV—can cause severe illness. http://bit.ly/2UeuVL5

So why can’t the most popular search engine provide an article in the top 10 results that will answer the question directly? The answer is due to high ranking media sites pushing an enormous amount of opinion based articles, that have replaced articles from lower ranking sites that would have answered the question. Most individuals are not going to sift through pages of data looking for the answer; they stop at the first page and usually look at the top results.

https://youtu.be/V8A0Ji5Cl9I

Mass Hysteria: Panic never leads to a positive outcome

This hysteria based sell-off is producing one of the most significant buying opportunities in decades, more on that later.

In the short-term technical analysis cannot identify support levels because we are dealing with madness, and that is the reason, we added the new standard in the anxiety index.  What exacerbates the situation is that there is very little liquidity, look at the bid and ask price on some options they are unreal, for example, a bid of 1.40 and ask of 5.00.  This provides a few big players with the opportunity to move the markets in whatever direction they see fit.

The only thing that can help stabilize the situation immediately will be one of the following

  • The Fed throws the Kitchen and the Kitchen sink at this market and A huge Stimulus package is unveiled
  • The press starts to accurately report the news; all they have to go is go to worldmeters.info to get a better take of what is going on
  • A new rapid detection test is announced
  • The US comes up with concrete measures to rapidly test a large number of individuals. This would be seen as good news because the average death rate is 1.39% and that’s taking all groups into consideration. This is significantly lower than in China and many other nations.
  • A vaccine works in clinical trials. The FDA is going to approve the usage of this vaccine extremely fast, however, data has to show that it works even with limited trials.
  • A treatment that has a 90% cure rate.,

Mass Hysteria in the markets serves as the foundation of the Next bull market.

when you add in stupidity and ineptitude by the elected officials, what should have been a mild situation turned into a nightmare type scenario.  We are supposedly the most advanced nation on earth, but after the current debacle, one would be hard-pressed to call the US advanced at least when it comes to the medical arena.

What we know for sure, is that a vaccine and a better treatment will be found; it is just a matter of time. As for the press and politicians acting in a sensible manner that’s a hard call.

This chart from the 1940s clearly illustrates that every so-called crash has proved to be a buying opportunity and in the long run, bears are always killed, but the same cannot be said of bulls. Hence, when the trend is up and it is up right now, every strong correction has to be viewed through a bullish lens.

Mass Hysteria is A Contrarian Investor’s Best Friend

Still, the long term outlook is given, more so as this crash started on a note of uncertainty, unlike every previous market crash.

“the time to buy is when there’s blood in the streets.” Baron Rothschild

Losing your head in a crisis is a good way to become the crisis.C.J. Redwine

Sooner or later comes a crisis in our affairs, and how we meet it determines our future happiness and success. Since the beginning of time, every form of life has been called upon to meet such crisis.Robert Collier

Successful people recognise crisis as a time for change – from lesser to greater, smaller to bigger.Edwin Louis Cole

It’s not always easy to do what’s not popular, but that’s where you make your money. Buy stocks that look bad to less careful investors and hang on until their real value is recognized. I’ve never bought a stock unless, in my view, it was on sale. Buy on the cannons and sell on the trumpets John Neff

In order to win as a contrarian, you need the right timing and you have to put on a position in the appropriate size. If you do it too small, it’s not meaningful. If you do it too big, you can get wiped out if your timing is slightly off. The process requires courage, commitment and an understanding of your own psychology Michael Steinhardt

I will tell you how to become rich…Be fearful when others are greedy. Be greedy when others are fearful. Warren Buffett

To succeed as a contrarian, you must recognize what the crowd believes, have concrete justification for why the majority is wrong, and have the patience and conviction to stick with what is, by definition, an unpopular bet. Whitney  Tilson

Humans are prone to herd because it is always warmer and safer in the middle of the herd. Indeed, our brains are wired to make us social animals. We feel the pain of social exclusion in the same parts of the brain where we feel real physical pain. So being a contrarian is a little bit like having your arm broken on a regular basis. James Montier

There are many who give advice, but few that offer guidance. Anonymous

Our all-time favourite

To buy when others are despondently selling and to sell when others are euphorically buying takes the greatest courage, but provides the greatest profit. Bull markets are born in pessimism, grow on scepticism, mature on optimism and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell. If you want to have a better performance than the crowd, you must do things differently from the crowd. Sir John Templeton

Stock Market Outlook Going Forward

 

We have moved deeper into the madness zone, and neutral sentiment has dropped to levels not seen for years. It is trading at 13, but bullish sentiment while below its historical average is still quite high, it would be ideal for it to drop below 24. Bearish sentiment continues to trend higher, and that’s a good sign.  As things stand right now, we are close to another “mother of all buy signals” that would match that of 1987 and 2008. Our indicators just need to dip slightly lower into the oversold range.

The trend as per our trend indicator is positive which suggest that every pullback ranging from mild to wild should be embraced.

Courtesy of Tactical Investor

 

Mass hysteria: An epidemic of the mind?

An outbreak of fatal dancing fits among members of the same community, men suddenly gripped by the sickening fear of losing their genital organs, and teenagers having mysterious symptoms after watching an episode of their favorite TV series — these are all instances of what we often refer to as “mass hysteria.”
“They danced together, ceaselessly, for hours or days, and in wild delirium, the dancers collapsed and fell to the ground exhausted, groaning and sighing as if in the agonies of death. When recuperated, they […] resumed their convulsive movements.”

This is a description of the epidemic of “dancing plague” or “dancing mania” as given by Benjamin Lee Gordon in Medieval and Renaissance Medicine.

These events were spontaneous outbursts of uncontrollable dancing motions that gripped people in communities across Europe in the Middle Ages.

Those affected would often reportedly be unable to stop dancing until they were so worn out and exhausted that they died. These events are typically cited as some of the first known instances of what would come to be referred to as “mass hysteria.”

Mass hysteria is a phrase that is used so often and so imprecisely to refer to anything from giving in to fashion fads to participating in riots and raves that it has become something of a fluid concept, synonymous with anything with a negative connotation that involves the participation of a large group of people. Full Story

 

The Mystery of Mass Hysteria

WEDNESDAY, Jan. 18, 2012 — A few months ago, six teenagers at LeRoy Junior-Senior High School in upstate New York began exhibiting tics and verbal outbursts that resembled some of the classic symptoms of Tourette syndrome. The students — all girls, of whom there are now a dozen — were shaking and jerking uncontrollably, sometimes to the point of not being able to speak.

Parents and school officials were understandably alarmed and launched a full-scale investigation to determine whether environmental substances in any of the buildings could have triggered the problem. Thus far, however, all reports have come back clean.

Now a doctor who is treating some of the girls has come forward with a surprising explanation: mass hysteria.

“It’s happened before, all around the world,” said Laszlo Mechtler, MD, the neurologist who diagnosed the teens. “It’s a rare phenomena.”

Mass Hysteria Throughout History
Not that rare, as it turns out. Mass hysteria — in which various people in a common group (such as students within a school) spontaneously exhibit an outbreak of physical symptoms caused by psychological stress — has been documented frequently over the ages, dating all the way back to the 14th century. In fact, according to a report from the Johns Hopkins University School of Hygiene and Public Health, there were at least 70 distinct outbreaks between 1973 and 1993 alone, 34 of which occurred in the United States. Schools, workplaces, and small communities were the most common settings of these events Full Story