Social mood is changing - are stocks in a decline?

Enthusiasm in stocks has started to wane, says John C Burford. Swing traders should get ready for a sharp downturn.

I will continue coverage of the stock markets today, because I believe we are at a historic point in terms of social mood. And if I am correct, this will show up in the stock market, because it is social mood or sentiment that drives the stock market.

In fact, the stock market is the most immediately responsive financial vehicle for highlighting changes in social mood. This is because a stock trade can take place at the click of a mouse after making the decision to trade. Are you feeling positive? Then click the 'buy' button. Feeling negative? Then click 'sell'.

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John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.