Third quarter end this year now being the worst quarter end on record for the major indices. However, the bulls are so high right now that their all important support zone is saved. Many of them loaded up on this “pullback” target looking for at least a retest of the year high. Even more interesting, the so-called bears out there all covering their shorts at this same zone as they can’t see why the stock market would go much lower.
In other words, everyone is bullish now, unlike what the AAII sentiment suggested. Actions speak louder than opinions. What if something out of the the blue happens, like, Bank of Japan fails to defend their financial system? Anyone really paying attention to the global financial system stability at all?
Or, what makes it alright to let the US Federal government to shutdown when US is actually at war with every non-NATO nations in the world?
I find this great example on ChatGPT that shows how stupid it really is. Of course, AI enthusiasts will say that we can train it to solve these problems too. What they failed to see is that by Godel’s Theorem, this blindspot within an AI system will forever not be able to get the correct answer with just a little twist to the conditions. In short, as I pointed out, AI will always be the most useless and being harmful when you seriously need it to help you solve a real problem.
Here is an interesting video update from David Lin talking with Milton Berg on what will happen next in the stock markets. Berg called the top successfully for the year so far so his opinion is definitely worth listening to.
Bill Ackman showed up at CNBC’s Delivering Alpha Summit and gave his insights on the current market environment. His bond short trade is now another legendary move on record. His talks are always interesting.
For my Asian fans, Happy Mid-Autumn Festival!
