The post argues that during bull markets strong investor enthusiasm pushes prices well above the 40-week moving average, after which profit-taking plus a wave of shorting commonly reverses momentum and reverts prices toward the 40-week MA. The author recommends keeping strategy simple by watching this mean-reversion dynamic rather than adding complex indicators.
In bull markets stocks often become over-extended above the 40-week moving average as 'animal spirits' drive large rallies.
During bull markets, when animal spirits are running wild, stocks run up a lot and get over-extended relative to the 40-week ma.
Then, profit taking reverses the momentum + shorts pile on and bring prices close to the 40-week ma.
No need to complicate things, keep it simple.