Sunday, October 12, 2008

Forecasting Stock Market Psychology – Cycles of Market Emotions

Forecasting Stock Market Psychology - Looking at The Cycles of Market Emotions

Stock Market is a reflection of the collective mood of players in the Stock Market.

Greed and Fear are the strongest mood or emotions that move the Stock Market. Fear creates panic selling and chase the stock market down. Greed creates buying frenzies and chase stock market up.

Below is a fun and informative chart showing how the emotions of individual investors follow the market cycles (source: Westcore Funds).

The Cycles of Market Emotions

(click on image to zoom out)

So Emotions Rule the Stock Market. If one can forecast the emotional tides of players in the Stock Market, then one can forecast whether the Stock Market will likely head up or down. Right?

Wow! Who can do that?

Financial Astrology = Chinese Astrology = Chinese Metaphysics = Fengshui can tell when the emotional tides are high or low!

That's why my Fengshui Stock Market Forecast have been spot on to-date!

Fengshui uses the 5 Elements to forecast the Stock Market Emotions, as follows:

Wood = Anger
Fire = Happy
Earth = Worry
Metal = Sad
Water = Fear

So now you know why the Stock Market Crash in October 2008?

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