It's obvious when you think about it, but lots of investors struggle to come to grips with this fact: The stock market is like a living creature whose personality mimics the psychology of the investors who give it life.
If investors are calm and optimistic, the market naturally reflects that positivity.
But when investors are unsure about the immediate future – like they are right now – and have to juggle competing and complementary apprehensions about… politics… interest rates… economic growth… and whether the mega-cap tech stocks they believed were the Holy Grail are about to be subject to all kinds of new regulations… their nervousness manifests itself as volatility, mirroring their fears.
That's where the market is now – where it's been since February, in fact.
Goodbye, Steady Eddie – hello, Nervous Nellie.
When that happens, the market does what it always does: It takes the path of least resistance.
Where's that path heading now?
I'll show you. Buckle up…
About the Author
Shah Gilani is the Event Trading Specialist for Money Map Press. In Zenith Trading Circle Shah reveals the worst companies in the markets - right from his coveted Bankruptcy Almanac - and how readers can trade them over and over again for huge gains. He also writes our most talked-about publication, Wall Street Insights & Indictments, where he reveals how Wall Street's high-stakes game is really played.