MARKET ENVIRONMENT: by Woody Dorsey.
There is nothing to worry about. Talking Heads Explain Everything but their Teleprompters are rigged. I had read the Profileprompter some time ago. It said: Expect Inflation, Rising Rates, and an ending Equity Adoration. And recently: “Recognition on Rates and Inflation is an important psychological development.” These are still very early days folks. Equities are taking their time turning.
This Week: This week had been corrective but with expected bounces into month end. Next week is corrective.
- Near Term Diagnosis: Sentiment is 92% Bullish today.
- QUESTIONS ANYONE?
MARKET TIMING: No change: A nominal trading low is due in the 3/4-10 time zone. That makes next week looking corrective gain or maybe more sideways trade in a nowhere distribution which only extends the seduction that stocks cannot really go down. Nominal trading high near 3/26.
SENTIMENT INTERPRETATION: The Dorsey Tactical Market Sentiment registered 1% bullish sentiment on 2/1 led to bounces into the 98% bullish on 2/9 which turned the market down in alignment with the price pattern. Now, todays 92% likely ended the up opportunity for this week! Again, “Stocks need to break the lows of 1/29 to confirm an inevitable structural change in the market.”
The DORSEY Interim Market Sentiment, had a hard run to the upside before reversing importantly. That was a symptom of an obscene liquidity occurring a late cycle Boom.
MARKET SUMMARY: The Zoom Boom will be followed by a Bust. The trading profile allows for a trading low in early March. I am looking at both the fourth and 3/10 as dates. Profile may then turn up into 3/26ish. It is a mess. Potential Kill Zones or Spikes are best due later on.