Sunday, January 22, 2017

Freaking Out ‘N Moving On: Jan 21-27 2017

There’s a new U.S. President in town.  Some people are excited, and some are really quite upset.  A great tension has built up since Election Day surrounding the beginning of Donald Trump’s term.  This build up of foreboding and impending doom even showed up in the weekly top internet search trends that we track and analyze, and was discussed in last week’s post.  This tension is about to be released.

The chart below shows the ups and downs of the four primary mood qualities that all search trends are converted to in our analysis (for whatever reason, what we collectively focus on, i.e. the search trends, shows up in the news, the markets, and general ambience about three weeks later).  The gray line (Controlled) goes steadily up from early November to Inauguration Day and then drops off sharply over the next two weeks.  That sharp drop and its reverberations should be visible this week in the news cycle, in the stock and commodities markets, and the overall mood.



Another part of the analysis is identifying the patterns that show up.  Two have been identified for this week.  First there is a pattern that is associated with high emotions, passion, and panic which began last week and completes this week.  The second is a pattern which is directional, forward moving, and generally optimistic.  This begins sometime this coming week and continues into the following week.

In our members’ trading room at MarketMood.net we also translate these patterns into market forecasts for the coming days and weeks.  Undoubtedly, the coming week should be topsy turvy and highly volatile as one pattern completes and the other begins.  Hang on to your hats!

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