Sentiment shift

Market themes are becoming more clearer and the asset allocation and rebalancing games continue. The most important thing to watch is sentiment shifts. If the sentiments shifts rapidly then we will have good bounce. If dip buyers keep stepping in and proclaiming buy at every stage, the market most probably will deal a knockout punch to them first before it goes up.

Watch the perma bears and medias favorite bears. If they start dancing on the street and start proclaiming I told you so or start peddling in rumour, be on the watch. I already see one of them actively peddling some rumours. If the Cramer equivalent of bearish scenario peddlers have new teeth job and botox job and start flashing their teeth on CNBC, you can buy the market.

Beginning of year was too uniformly bullish, if that consensus fades and bearish meme takes hold I will be a buyer, You need 3-4 negative days to suck out the bullish oxygen. Then the market will have lot of things lined up and offer a good window of opportunity for bullish plunge.

When the hope fades, a speculator has an edge.