Login

Technically Speaking: Early Warning Signs In COT Positioning

Share on Facebook Tweet on Twitter

Posted by Lance Roberts - Real Investment Advice

on Tuesday, 09 January 2018 07:44

COT-Positioning-Warning

This past weekend, I discussed the surge in market exuberance in terms of both individual and professional investors. Of course, such surges in exuberance is generally indicative of the “capitulation phase” as the last of the “holdouts” finally jump back into a market which “can seemingly never go down.”

But therein lies the danger. It worth noting that despite the “hope” of more fiscal support for the markets, longer-term conditions currently persist which have led to rather sharp market reversions in the past.

“There are many factors from economic, monetary, geopolitical, and financial which have ignited each bubble, and bust, period throughout history. However, each bubble had in common the same extreme levels of confidence, exuberance, valuation and price extension that we see today. And they all ended the same, as well.”

Regardless, the market is currently ignoring such realities as the belief “this time is different” has become overwhelming pervasive. Importantly, such levels of exuberance have NEVER been resolved by a market that moved sideways.

.....read more HERE 


Free Subscription Service - sign up today!

Exclusive content sent directly to your Inbox

  • What Mike's Reading

    His top research pick

  • Numbers You Should Know

    Weekly astonishing statistics

  • Quote of the Week

    Wisdom from the World

  • Top 5 Articles

    Most Popular postings

Learn more...



Our Premium Service:
The Inside Edge on Making Money

Latest Update

If It Ain't Broke, Don't Fix It

This month I update two long-time favourite stocks from our Canadian Growth Stock Research -  Boyd Group Income Fund (BYD.UN:TSX) and Enghouse...

- posted by Ryan Irvin

Michael Campbell Robert Zurrer
Tyler Bollhorn Eric Coffin Jack Crooks Patrick Ceresna
Josef Mark Leibovit Greg Weldon Ryan Irvine