🧵 Sentiment and RESM Parabola Theory This was posted several months ago, but this account had about 1/3 of the followers it has now, so this will probably be new to most. And it is pertinent to the current environment. First, here we look, at the big picture. Then we will look at the current environment. 1/3 As we approach the 35-Year and 105-Year Parabolic Rise, there will be wilder emotional swings translating to more volatile price action. This means very sharp and strong corrections, but also corrections that get shorter and shorter in time. This violent volatility driven by rising emotionality of the market participants is necessary to create the parabolic rise. A good way to measure this rising emotionality is to inspect the "neutral" sentiment reading of the AAII Sentiment Survey. As the average number of survey participants that are willing to say they are "neutral" decreases, that necessitates higher readings in both the "bullish" and "bearish" camps. This shows that market participants are being pushed to extremes in their emotions, creating the rising emotionality of a parabolic rise, and the subsequent reset.