“The first leg up of an unusually powerful new bull market is always met with skepticism from those who follow markets, that’s this crowd, whereas the general public isn’t even aware it is rallying. I have mentioned the analog example of the beginning of the super bull of 1982. The skeptics are positioned on the sidelines waiting and watching for a pullback to allow for an entry. This is the fabled “Gentleman’s Entry” that they hope for. Mr Market, however never accommodates them. Instead they are in-prisoned by their experience of the previous bear market. Shall we say the pain of loss has caused a market form of battered wives syndrome.

Even those few who actually got decent entries near the bottom get fidgety and can’t stand the tension of their initial success and fear giving it back which the previous bear’s dynamic has indoctrinated them with. So even those who positioned themselves correctly get thrown off the saddle of the incipient bull thinking they can out smart him and improve their position, so they too sell and find themselves on the sidelines waiting to improve their position or cost basis.”