Beware of dead cat bounce in NSE rise



BD link

We have always argued in these pages that movements in the stock market (and all financial markets) are not influenced by outside causes. The guy is wondering why the market has moved south without any cause.

Movements in the financial markets are endogenous i.e they arise out of social mood which is part and parcel of human nature. The waves of social mood are patterned according to The Wave Principle. That is why they have predictive value.

Those waiting on Safaricom fundamentals to predict where the share might go will be disappointed.

Social mood affects everything that you do.

A simple question can be asked. Does war make people angry ? The assumption here is that war caused
people to be angry, but, wait, what caused the war in the first place?

An Elliottician (Socionomist) would reverse the statement to imply that angry people make war. In this case the proper cause (anger, mood) results in war (effect).

Interesting. So what will cause the social mood to change from negative to positive?

The cause is usually not important rather catching the waves of social mood is what matters. The social mood moves in a defined pattern so look for the point of maximum despondency and profit from the return of euphoria. The change to a positive sentiment will come once the social mood waves are done.

Beware of dead cat bounce in NSE rise



BD link

We have always argued in these pages that movements in the stock market (and all financial markets) are not influenced by outside causes. The guy is wondering why the market has moved south without any cause.

Movements in the financial markets are endogenous i.e they arise out of social mood which is part and parcel of human nature. The waves of social mood are patterned according to The Wave Principle. That is why they have predictive value.

Those waiting on Safaricom fundamentals to predict where the share might go will be disappointed. I think this bear will have the largest number of casualties and deliver the most devastating losses. The premise here is simple; this has been a slow grinder of a bear, it doesn't afford investors that moment to absolutely capitulate/freak out and thereby cut one's losses and run for hills. It has given investors hope all along. Moreover, the average investor is yet to figure out why we are in a bear in the first place.

Social mood affects everything that you do.

A simple question can be asked. Does war make people angry ? The assumption here is that war caused
people to be angry, but, wait, what caused the war in the first place?This is what the mainstream media/establishment has been trying so hard to obscure from public glare. After numerous incumbents/out and out favorites have lost their shirts in elections, they are still clinging onto some fanciful notion that this particular tide can be wished away. I wonder what the excuse will be when the EU breaks down and WWIII is a distinct probability.

An Elliottician (Socionomist) would reverse the statement to imply that angry people make war. In this case the proper cause (anger, mood) results in war (effect).