When measuring market direction,
it is important to consider excessive bullish/bearish sentiment,
to quantify price direction over the near term.
Right now bearish sentiment,traders believing the market will go down,and putting their money behind it
by buying Put Options, rose to a 2019 high in September, and has continued to be elevated again in October.
Simply put, the market will rarely go along with the crowd of bearish sentiment.
In fact more often then not, the market will do exactly the opposite, and continue to rise in price
climbing a proverbial wall of worry that will frustrate bears where it hurts them the most, in their bank accounts.
I'm not saying the market can't or won't go down.
But it won't go down, when a crowd of overly bearish traders expect it to.
THE_UNWIND
10/10/19
NEW YORK
it is important to consider excessive bullish/bearish sentiment,
to quantify price direction over the near term.
Right now bearish sentiment,traders believing the market will go down,and putting their money behind it
by buying Put Options, rose to a 2019 high in September, and has continued to be elevated again in October.
Simply put, the market will rarely go along with the crowd of bearish sentiment.
In fact more often then not, the market will do exactly the opposite, and continue to rise in price
climbing a proverbial wall of worry that will frustrate bears where it hurts them the most, in their bank accounts.
I'm not saying the market can't or won't go down.
But it won't go down, when a crowd of overly bearish traders expect it to.
THE_UNWIND
10/10/19
NEW YORK