MY JOURNAL FOR THURSDAY MORNING – NOVEMBER 28, 2019

NEWS, BREAKOUTS, MOMENTUM PLAYS, & BOTTOMS

Be Aware of Crowd Psychology – 5i Research 📰

Schiller’s dictum – “Anyone taken as an individual is tolerably sensible and reasonable – as a member of a crowd, he at once becomes a blockhead.”

At a time when many retail investors use tools like social media as a resource to find investment information, understanding crowd psychology becomes crucial.

My daily interactions on social media can be summed up best by Economist John Kenneth Galbraith, “We have two classes of forecasters: those who don’t know and those who don’t know they don’t know”. Those who don’t know they don’t know are the ones to look out for, yet I often see new investors making the mistake of falling for these self-proclaimed prophets. New investors must avoid being emotionally swept up by the excitement created by these individuals to prevent their own reality from becoming badly distorted.

What many retail investors don’t realize is that crowd psychology and liquidity is inversely related. – READ MORE

Dwight Galusha, CMT, is a contributor of 5i Research, a conflict-free investment research provider for retail investors offering research reports, model portfolios and investor Q&A, which is available to try for free (Click Here).

Stock Market Outlook for November 27, 2019 – EquityClock.com 📊

On the economic front, a report on new home sales was released during Tuesday’s session. The headline print indicated that sales of new homes declined by 0.7% in October to a seasonally adjusted annualized rate of 733,000. Analysts were expecting a rate of 707,000. Striping out the seasonal adjustments, new home sales were unchanged (0.0%) last month, which is weaker than the 1.5% increase that is average for this time of year. The year-to-date change is trending 36.3% above average through the end of October, representing the best performance in over three decades. Subscribers can login and view the seasonal charts of this report via the following link: https://charts.equityclock.com/u-s-new-home-sales

Tech Talk is a free stock market letter service available at TimingTheMarkets.com and EquityClock.com. Ask us about the Seasonal Advantage Portfolio.

Billionaire Ray Dalio Predicts The Next Big Market Crash 📺

About: Raymond Dalio is an American billionaire investor, hedge fund manager, and philanthropist. Dalio is the founder, Co-Chairman and Co-Chief Investment Officer of investment firm Bridgewater Associates, one of the world’s largest hedge funds. Bloomberg ranked him as the world’s 58th wealthiest person in June 2019.