Market Cycles - Must Read

We have the thesis that all markets, equities, bonds, forex, crypto, commodity futures, cash crops, etc., all follow a similar market structure or cycle.

The reason for this is each market has one common denominator, human emotions.

The Wall Street Cheat Sheet below provides a practical illustration of how human emotion changes through the market cycle.

I am confident that each reader can relate to these feelings and how they affect our decision-making.

Our application of Technical Analysis attempts to remove emotion from our decision-making.

For example, if an uptrend changes, we want to begin exiting or entering positions almost mechanically, regardless of our beliefs or attachment to our position.

Take a look at the infographic below and how the emotions change with the price action.

Now take a look a the red lentil weekly chart example below.

Where are we in the market cycle?

Are we still in an uptrend, and the feeling is Euphoria?

Some market participants are Complacent, while others think we are between Denial and Panic.

How are you feeling right now?