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These market whales may hold the key to the stock market’s next move, says former trader - MarketWatch

1. Investors are wary of a fast stock market rise since May. 2. Volatility control funds are influencing market dynamics substantially. 3. Retail investor participation is notably high, causing concerns for market sustainability. 4. Long-term outlook on stocks remains bearish; risks are rising. 5. Jobless claims fell, but tariffs may pressure inflation further.

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FAQ

Why Bearish?

The article emphasizes risks associated with institutional selling and high retail participation, indicating potential market corrections, similar to previous market bubbles in 1929 and 2000.

How important is it?

The article discusses market trends that could heavily impact investor behavior and consequently the DJIA, highlighting caution and potential volatility ahead.

Why Long Term?

Long-term bearish sentiment from an influential trader highlights potential structural weaknesses in the market's recovery, implying possible corrections over the coming months.

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