Stock Markets Investors Are More Bullish Than Ever While Traders Flock to Alternatives - Mike Swanson (10/27/2017)
Let's step back for a few moments and think about this week as it wraps up.
We live in a strange time in which there is chaos and a sense of unease and yet people believe in the financial markets more than ever before.
This week is ending today with the release of over 2,800 JFK assassination files by President Trump last night and the delay under demands of the CIA/FBI to hold back hundreds of them. Congress passed a law long ago saying all were to be released by midnight last night unless the intelligence agencies could show that some had to remain secret for national security reasons.
The spooks had over 20 years to prepare for today and thrust this memo on Trump yesterday at the last minute.
Can you say SNAFU?
My guess is that they assumed by doing this at the last second that Trump would do anything they wanted, but instead he delayed a decision for them so now this will be back in the news in the spring.
But that's just my initial speculation. Maybe there is more going on.
If you are curious here is one of the files released last night. It is a deposition of former CIA director Richard Helms. Notice that the file is incomplete. Check out the last paragraph where it ends:
It seems someone thought that there are still things to hide.
Now this week started with me saying that I was starting to watch a strange Bitcoin Block chain stock RIOT very closely to see if it can pause and consolidate for a few weeks from here for a Christmas rally.
This company makes zero money and I am only watching it because it is linked to Bitcoin - having purchased a crypto currency exchange.
And I am still watching it, because this year has seen a growing number of people wanting to get involved in Bitcoin and the other even more high flying cryptos and in this stock market valuations no longer matter as we are in full bubble phase.
What Bitcoin traders are doing is turning their back on the US dollar and the stock market.
Some of these people don't trust the US dollar, because they don't trust the system.
But there is bigger reason they are doing this and that is because the stock market has been barely moving all year on a daily percentage basis.
It just isn't providing enough action for the short-term trader.
However, stock market investors are more bullish than ever, because it hasn't had any pullback all year to amount to anything.
This week's Investors Intelligence survey came out to peg the number of bulls over 60%. That's a manic level only seen a handful of times in the entire history of this survey.
The investors intelligence survey is released every week after polling a group of newsletter writers and stock market advisors.
It is not a prefect timing indicator, but it is a sentiment indicator that works as a contrarian warning signal.
When everyone is bullish it means to be careful.
And when there are more people bearish than bullish it means think bottom and don't panic like everyone else.
Well to find the bearish sentiment you need to think gold and commodities, but when it comes to stocks there are no bears anymore.
Everyone thinks it will go up and the "perma" bears like Marc Faber have even been taken off the TV and banished!
Now I bring this survey to your attention not to tell you that the stock market is going to crash this week or next month, but that we are very late in this market cycle.
That means trading strategies make a lot of sense.
This is why I have talked a lot about options in the past few weeks.
It's also why so many are getting into Bitcoin and the crypto currencies where big price moves happen fast.
Now I'm not an expert Bitcoin trader.
Back in July I thought it could been topping out for good and was wrong.
It went up and up and all I know is that the higher the Bitcoins go the more people want to buy them.
Each asset class tends to have its unique trading patterns that take some experience to get used to.
And with Bitcoin I just don't have it, but I know someone who does.
That is master Bitcoin and crypto currency trader Teeka Tiwara of the Palm Beach Research Group.
On Thurdsay he started a live free cryptocurrency training session that is going to run for a week.
Even though it began yesterday you can still get in right now and get up to speed and the rest of the coming info.
In it he's going to explain how to get started in Bitcoin even if you have had no prior experience in it.
Plus he's going to reveal his trading strategy to play the ups and downs and the big swings.
The action is now in the cryptos.
To get involved in Bitcoin and the even hotter cryptos be a part of this by registering here
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