Month: March 2020

Upcoming Trends in Stock Markets

Upcoming Trends in Stock Markets

Misdirection

Upcoming Trends: 90% of individuals are now part of the “polarised equation” and therefore the crowd is going to be very easy to manipulate. If you want to rob or manipulate a person without almost any resistance, give them a false narrative to believe in, one that makes their blood boil and then it’s game over for the lemmings. In others, enter the world of misdirection; the ploy is to direct their attention to things that don’t matter but elicit a strong emotional response. Once the response is elicited they are tied in this loop and cannot see or focus on anything else.

While misdirection is nefarious, it’s a brilliant strategy, it was used in Brexit,  and it is increasingly being used in every election, and it’s now being used ruthlessly in Europe.  Even though the Alt-right trend briefly slowed down in Europe, those that concluded it had ended have made a fatal mistake.

Nationalism and Misdirection 

Nationalism is going to soar in Europe to levels not seen for hundreds of years, and the Alt-right parties are going to sweep into power one country at a time.  Misdirection is the reason why those in power push individuals to embrace nationalism. Once you sell the masses a line that this “something” is good for the nation, then you can continue to sell anything that appears to be for the good of the nation.

The globalisation trend is over and we are now entering the era of nationalism. In other words, citizens will move to the point where they will be willing to do anything to maintain their sovereignty. No matter how hard the players try to stop this trend; it’s simply going to be impossible, it is one of the most powerful trends we have seen in a very long time; this is a super bull trend and the shortest cycle for such a trend is 15 years.

However, given the level of emotional attachment, this trend is generating, we would not be surprised if it lasts twice as long. Hence, get used to and understand the phrase “when in Rome do as the Romans do”. We have modified this phrase to reflect the changing times. When in Rome Do as the Romans do or be ready to be sent home.  When you travel, don’t take your nations views with you. Get used to doing things the way they are done in the hosting nation.

Immorality and Drugs

Political correctness is dying, and a lot of things that are deemed moral today will be redefined as immoral and that which is classified as immoral today will probably be classified as moral in the years to come. A host of nations will legalise drugs over the next 3-5 years, including hard drugs; the phrase it’s all about money is going to take on a new meaning in the years to come.

Pleasure Slaves 

Pleasure is another form of misdirection when abused. If the person gets tied into the pleasure loop, they are not able to focus on anything else, nor do they want to.  It’s one of the most potent of tools as illustrated by the experiments below.

However, the biggest threat is going to be a system that directly stimulates the parts of the brain that control pleasure. It’s going to be the most addictive drug on the planet, and it will be (totally)legal and the masters will control the masses like never before. The excerpts posted from an insightful article will save us time and give you a clue as to what lies in store for the masses in the future.

In the 1950s, the psychologists James Olds and Peter Milner modified the chamber so that a lever press would deliver direct brain stimulation through deeply implanted electrodes. What resulted was perhaps the most dramatic experiment in the history of behavioural neuroscience: Rats would press the lever as many as 7,000 times per hour to stimulate their brains. This was a pleasure centre, a reward circuit, the activation of which was much more powerful than any natural stimulus.

A series of subsequent experiments revealed that rats preferred pleasure circuit stimulation to food (even when they were hungry) and water (even when they were thirsty).

Focus on the last part of the above sentence and on the paragraph below, for it highlights the power of pleasure to overrule everything.  Humans will do whatever is deemed necessary in order to gain access to a machine that provides this level of pleasure and in doing so they will sign whatever document has to be signed giving up whatever little privacy they desperately cling onto today.

Self Stimulating stimulated themselves unto death

 Self-stimulating male rats would ignore a female in heat and would repeatedly cross foot-shock-delivering floor grids to reach the lever. Female rats would abandon their newborn nursing pups to continually press the lever. Some rats would self-stimulate as often as 2000 times per hour for 24 hours, to the exclusion of all other activities. They had to be unhooked from the apparatus to prevent death by self-starvation. Pressing that lever became their entire world.

 Perhaps the most egregious example was reported in a paper entitled “Septal stimulation for the initiation of heterosexual behavior in a homosexual male,” published in 1972. The rationale behind this experiment was that because stimulation of the septal area evoked pleasure, if it was combined with heterosexual imagery it could “bring about heterosexual behavior in a fixed, overt homosexual male.”

And so Patient B-19, a 24-year-old male homosexual of average intelligence who suffered from depression and obsessive-compulsive tendencies, was wheeled into the operating room. Electrodes were implanted at nine different sites in deep regions of his brain, and three months were allowed to pass after the surgery to allow for healing. Initially, stimulation was delivered to all nine electrodes in turn. However, only the electrode implanted in the septum produced pleasurable sensations. When Patient B-19 was finally allowed free access to the stimulator, he quickly began mashing the button like an 8-year-old playing Donkey Kong. According to the paper,

“During these sessions, B-19 stimulated himself to a point that, both behaviorally and introspectively, he was experiencing an almost overwhelming euphoria and elation and had to be disconnected despite his vigorous protests.”

Lest anyone think that it is only men — creatures of inherently base urges — who would respond in this manner, another recorded case, performed by a different group, involved a woman who received an electrode implant in her thalamus, an adjacent deep brain structure, to control chronic pain. This technique has proven effective for some patients whose severe pain is not well-controlled by drugs. However, in this patient the stimulation spread to nearby brain structures, producing an intense pleasurable and sexual feeling:

“At its most frequent, the patient self-stimulated throughout the day, neglecting her personal hygiene and family commitments. A chronic ulceration developed at the tip of the finger used to adjust the amplitude dial and she frequently tampered with the device in an effort to increase the stimulation amplitude. At times she implored her family to limit her access to the stimulator, each time demanding its return after a short hiatus.”

So, not to put too fine a point on it, these patients responded just like Olds and Milner’s rats. Given the chance, they would stimulate their pleasure circuits to the exclusion of all else. You can read the full story by copying and pasting the link in your browser. http://bit.ly/2QfseXT

The new models will be run with AI programs monitoring to see which dosage is the most effective and what part of the brain can be stimulated the most and finally what stimulation makes you more susceptible to manipulation. People will willingly sign contracts without reading them.  The average person will be hooked on the spot and just to make things appear fair, almost everyone will be given a free 30-60 day money-back guarantee, but 90% will not need more than 1 hour to make up their minds. They will sign whatever disclaimer is needed to get the pleasure they seek.

Social Media & Misdirection

Social media was the first step of this experiment, as it has been shown that social media leads to increase secretion of dopamine. It’s a vicious cycle. More dopamine release creates the need for even more stimulation, and that is why so many people are addicted to their smartphones.  Nature seems to have hardwired our brains to react to a host of factors that have a direct effect on the pleasure centres of the brain, from crack to wine, from sex to meditation and the list goes on.

The easiest individuals to manipulate are the ones that wear their emotions on their sleeves. Makes us wonder if this whole Alt-right and Alt-left setup act is just the prelude to the main act. What a way to end all things by offering a solution to heal the massive fissures created as a result of the polarisation wars.  Food for thought.

Additional research illustrates how powerful the urge to experience “pleasure” is in animals and by default, humans and why the big players want to alienate individuals and why communities are dying.  A sense of belonging to a group or community helps one deal with, and overcome such types of addictions.

Alexander’s experiments, in the 1970s, have come to be called the “Rat Park.1 Researchers had already proved that when rats were placed in a cage, all alone, with no other community of rats, and offered two water bottles—one filled with water and the other with heroin or cocaine—the rats would repetitively drink from the drug-laced bottles until they all overdosed and died. Like pigeons pressing a pleasure lever, they were relentless, until their bodies and brains were overcome, and they died.

But Alexander wondered: is this about the drug or might it be related to the setting they were in? To test his hypothesis, he put rats in “rat parks,” where they were among others and free to roam and play, to socialize and to have sex. And they were given the same access to the same two types of drug laced bottles. When inhabiting a “rat park,” they remarkably preferred the plain water. Even when they did imbibe from the drug-filled bottle, they did so intermittently, not obsessively, and never overdosed. A social community beat the power of drug. http://bit.ly/2PPrwBs

Life Extension Therapies

A sudden breakthrough will be announced in life extension therapies in the not too distant future that will have huge implications on the existing pension system and a huge impact on organised religion.  Asia still looks likely to lead the way unless the US and Europe lift their restrictions of using embryonic cells in life extension therapies.

Alternative health insurance packages will debut

A company or companies will start to offer a global health insurance package, and that will be the first signal that the US health sector is going to implode.

The end of movie theatres’

Streaming is going to continue gaining traction at a rapid place and move theatres’ are set to become obsolete like the old drive-in cinemas. Individuals will be able to watch new releases from home as opposed to going to the theatre and at a lower price. Actors are also fast approaching the point of extinction as AI is going to take CGI to the next level. They will be able to create human-like actors with the press of a button and these actors will work for free and nonstop.

Indoctrination

To understand this topic, let’s start with a question. If two men are arguing and one guy has data to back up his stance, and the other does not have data to back up his stance but irrefutably believes his view is the right one.  Who is correct and who is wrong?

The obvious answer would be to state that the guy that has the data to back his point, but if one digs deeper one would have to ask whether this data is indeed valid, has it been independently verified are the sources legit, etc.  But even that does not matter, for no matter what data either individual provides to the other, they will both stick to their guns.

The right answer is that they are both right, for nothing anyone can say will move them to change their position.  Welcome to the world of indoctrination.  Being conservative or liberal or open-minded or closed-minded, or whatever label you want to come up, is in most cases nothing but a form of indoctrination. You think the way you do because of your parents, the school you went to, the friends you have and your religious bent and so on.

Taking things even further, one can state that the liberals are not wrong for the way they see the world because they believe in that line of thinking and the same applies to the conservatives. Alt-right and Alt-left are nothing but forms of indoctrination and the extreme right and left have just received a super dose of brainwashing.

This is the main reason we have stated over and over again, that one should not wear their emotions on their sleeves, for no good can come from it.  What has made things worse today is that very few people agree to disagree and move on to a new topic. Today opposing groups want to beat their views into the other group, regardless of whether they agree or not. This is how the trend of polarisation started.

Once you start telling a group that does not agree with you, that they are wrong, that they are stupid and start calling them names, a dangerous sequence of events is triggered and nothing the other camp says or no matter what evidence is provided, the opposing camp will refuse to budge. Look around today for that is where we are and the trend is still in its infancy.

This is a long topic and thankfully, Noam Chomsky provides a nice overview of this subject. We will cover this topic in more detail but if you are interested in understanding more about the inner working of the mindset, then this is a topic one should familiarise themselves with and this video provides a good starting point   http://bit.ly/39ldCir

Courtesy of Tactical Investor

 

 

Will the stock market crash further in 2020?

March 19, 2020 13:00
In November 2019, a survey from UBS Wealth Management showed that 55% of 3,400 investors with at least $1 million in investable assets expected a ‘significant drop in the markets in 2020.’ Fast forward to the end of Q1 of 2020 and the Dow Jones stock market index logged a more than 2,000 point drop in a day – its largest in history – before sinking more than 10,000 points.

The fire sale in world stocks – where $21 trillion has been wiped out – infected other markets as investors shunned bonds, gold and currencies, in favour of cash. Calls for a global recession increased dramatically and a Bank of America survey on global growth expectations saw its biggest drop ever in the bank’s 26-year poll history. The question now is will the stock market crash further in 2020 and what are the potential trading opportunities around it? Read on to find out.
Why did the stock market crash?
Investors surveyed in the UBS Wealth Management report at the end of 2019 cited three significant concerns which could lead to a stock market crash in 2020. These were:

The ongoing US-China trade conflict (44% of investors believed this would affect their portfolios in 2020)
Their local political environment (41% expected that this would affect their portfolios’ performance)
The 2020 US Presidential election (37% of investors believed this would have an impact) Full Story

 

2020 Stock Market Predictions

Investors are likely to experience many headwinds in 2020 as the prolonged trade war with China reaches more hurdles and additional volatility continues with a presidential election.

Whether the extended bull market will continue remains unknown as tariffs, inflation and a slowdown in the economy could impact growth profit margins, dampen returns and result in slower corporate earnings.

Here are 10 stock market predictions from chief market strategists, financial advisers and chief financial analysts.

10 Stock Market Predictions for 2020
1. Expect More Volatility in 2020
Given it’s an election year it’s likely the administration will do what it can to keep the decade-long bull run going, said Ryan Grace, chief market strategist for dough, a Chicago-based brokerage firm.

“I’d expect more volatility heading into the election,” he said. “I don’t see these current below average levels in volatility being sustainable. There’s a near record short position in the volatility futures presently and we all know how that ended last time in February of 2018.”

2. Global Economic Slowdown Could Continue
Grace said he does not see a breakout in yields across the curve which seems to be the call every year.

“We’re not out of the woods yet regarding the ongoing global economic slowdown,” he said. “China continues to slow, there are signs the U.S. economy is slowing and there’s no resolution to the trade deal yet.”

3. Trade War Resolution Remains Unknown
The trade war is still the biggest question facing investors, but “with markets where they… Full Story

Posted by Johnathan Meyers in Members Only, 0 comments

Dow Jones Today and The Dow Theory

Dow Jones today

Dow Utilities and what they are indicating for the markets

Dow Jones Today: The Dow Utilities via (IDU) surged to new highs In Sept and per the Tactical Investor Dow theory, the Dow should follow in its footsteps and it did so. The Dow set new highs both in Nov and December.  The laggard so far is the Dow transports and in due course it to follow the same path.

Utilities-Dec-2019

Both Dow transports, and Dow industrials are trading in the extremely oversold ranges, so technically they have plenty of upside potential. On the other hand, the Dow Utilities are now trading in the extremely overbought ranges, and the next bearish MACD crossover is likely to lead IDU(a proxy for the Dow utilities) to pull back to the 133-139 ranges, which would translate to a move to the 9300-9600 ranges for the Dow Utilities. If it comes to pass, the pullback should be treated as an opportunity.

If the Dow utilities pull back, then the Dow will follow in its footsteps too; therefore, the intensity of the next pullback will determine if the pullback the Dow experiences will range from mild to wild.  The trend is still positive, so we will only be looking at the pullback from an opportunistic perspective; in other words the stronger the deviation from the norm the better the opportunity.

IDU chart

Overall we expect the transportation and several stocks in the Dow industrials to outperform the markets.  When a sector is hated, and the trend is up, it’s probably the perfect time to establish long positions in that sector.

If the utilities close below the 801 to 804 ranges or IDU closes below 141 on a monthly basis,  then the first breakout attempt by the Dow transports is likely to fail. This will convince everyone that the transportation sector is going to breakdown, but precisely the opposite will transpire. If the Dow transports trade below 10500 for three days in a row, the odds of a move to the 9300 to 9600 will spike significantly.  Again any pullback should be viewed through a bullish lens. Overall we are also expecting the transportation sector to outperform the market over the next 9-12 months.

 

It is quite astonishing to see bullish readings continue to decline while the market is trading close it’s all-time highs. The anxiety gauge has pulled back and is now trading very close to the Panic zone.   Market Update Nov 30, 2019

The Dow is trading close to 28K again and if one looks at the sentiment, one would be inclined to think that it was trading closer to the 26.5k ranges. Neutral sentiment has inched up another two points and its almost at a 3 month high. Bullish readings are well below their historical average of 39. Overall market sentiment is indicating that a strong pull back if it comes to pass, has to be viewed as an opportunity.

In short, we can conclude that next year’s market action will catch 90% of experts with their pants down. All the experts, even those who got the first part of this bull market right, are wearing their emotions on their sleeves. How do we know? All one has to do is pay attention to their political bias? If you have a bias (be it politics or finance), your vision is clouded and hence your analysis.

Courtesy of Tactical Investor

 

 

Dow Jones Today, Stocks Rise As Record Jobless Claims Boost Stimulus Pressure

Stocks jumped at the starting bell Thursday, after a record spike in weekly unemployment claims turned up the heat on Congress to push through a $2.2 trillion coronavirus stimulus package. Meanwhile, Boeing (BA) and Intel (INTC) led the few early advancers on the Dow Jones today.

Coronavirus stocks Co-Diagnostics (CODX) and BioNTech (BNTX) spiked in early trade. CNA Financial (CNA) soared 37%. Signet Jewelers (SIG), Viomi Technologies (VIOT) and Canadian Solar (CSIQ) all scored double-digit gains on earnings news.

The Nasdaq jumped 2%. The S&P 500 advanced 2.1%, and the Dow Jones Indutrials grabbed a 1.9% gain. The Dow and the S&P 500 are each looking to chalk up their third straight advance.

Markets across Asia lost ground overnight, particularly in Japan. Europe’s markets traded sharply lower near mid-session, despite the European Central Bank eliminating its ceiling on its bond purchases to fight the economic impact of the coronavirus emergency.

U.S. bonds continued higher, sending the 10-year yield down 8 basis points to 0.79%. Oil prices struggled to turn a five-week nose dive, with West Texas Intermediate up more than 6% for the week, but trading down 3.5% early Thursday to below $24 a barrel.

Gear up for Thursday’s market action by reading IBD’s Investing Action Plan.

Micron Leads Nasdaq; Boeing Tops Dow Jones Today
Broadcom (AVGO) and American Airlines Group (AAL) topped the Nasdaq 100, up 6% each.

Boeing led the S&P 500 and the Dow Jones today. Full Story

 

This Is Why the Dow Jones Just Crashed 3,000 Points

Despite a bout of aggressive dip-buying, the stock market sold-off again, leaving Dow bulls with another grisly 2,500 point drop. | Source: AP Photo / Richard Drew

Another day, another circuit breaker for the Dow Jones, as the stock market hit limit down almost immediately.
Despite a brief bounce, the coronavirus battle looks increasingly like a marathon and not a sprint.
Dow bulls saw their positions smashed as big banks halted buybacks, oil companies faced credit downgrades, and Boeing collapsed 23%.
The Dow Jones plunged nearly 13% on Monday, triggering circuit breakers and erasing most of last Friday’s impressive gains.

Despite a bout of aggressive dip-buying, the stock market sold-off again, leaving Dow bulls with a grisly 3,000 point drop.The Dow Jones crashed just under 3,000 points on Monday. | Source: Yahoo Finance
All three of the major U.S. stock market indices were hammered when the opening bell rang. The Dow Jones, S&P 500 and Nasdaq all accelerated their losses late in the afternoon.

The Dow crashed 2,998.9 points or 12.93% to 20,186.72.
The S&P 500 dropped 11.98% to 2,386.19.
The Nasdaq fell 12.32% to 6,904.59.
It was a rout in the commodity sector. Crude oil lost 9.6% and Brent 12%. Both benchmarks slid below $30 per barrel, and markets likely haven’t yet quantified the astonishing build-up of inventory as both Saudi Arabia and Russia turn on the taps. Full Story

Posted by Johnathan Meyers in Members Only, 0 comments