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    Market Psychology Entry #0973

    Why the loudest optimist arrives after the largest move

    Peak bullishness follows a big rally because the move itself creates the conviction, so the loudest calls to buy appear after most of the gain has already occurred.

    Adept
    The hidden part #0973

    The loudest bull arrives after the move, not before it. The rally creates the conviction, and the conviction recruits the last buyers.

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    Market Psychology Entry #0954

    The reason a rising price is read as proof it will rise more

    A price that has been going up is taken as evidence it will continue, so the trend becomes its own justification and past performance is mistaken for a forecast.

    Adept
    The hidden part #0954

    A rising price is read as a forecast of itself. The trend becomes the thesis until it breaks, and the thesis has no floor.

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