When held in suspense, the investor herd typically fills in the empty spaces of information with their imagination, which feeds on the emotions of the moment.

If one were watching a movie with eerie music playing, a woman taking a shower and a shadowy figure approaching with something in its hand, do we imagine a spouse bringing a bottle of shampoo or is that shadowy figure a psycho killer holding a large carving knife?

This is suspense combined with imagination and it is what most investors are doing while they are “waiting for more information.” They see a psycho killer — not the spouse bringing shampoo.

“Any occurrence requiring undivided attention will be accompanied by a compelling distraction.” ~ Robert Bloch, author of suspense thriller, Psycho

This is the art of suspension — it is a form of illusion — and it is the creative manipulation and leverage of the imagination. When something is suspended, according to Webster’s Online Dictionary, it is held Lacking this information, our imagination provides it for us and creates an illusion — accurate or not — and we react and act accordingly.

Stocks did manage to hold on to yesterday’s gains, but it seemed as if investors were waiting[...]…