First Development of Increasing Movement

If practically all the stock were clever hands, after a little while, the economic authorities of the government will evaluate that the economy has become adjusted or has even halted its growth, and then the emissary bank would reduce its interest rate, to channel the movement that was once regulated due to the high interests before. From that moment on, there would be more money available and the stock exchange market would once again turn into an attractive option. This way the first speculators would get there, the tougher professionals, the pioneers, that would start to buy, as is natural, at prices that are in a high, since in any other way they would have come out of the firm clever hands they were in. most likely at first stock would be bought in small amounts and very slowly at prices that are shyly increasing to attenuate the pessimistic tendency. In this way, new interested people would come into the picture, the rates would increase and little by little a chain reaction would come about: less pessimism, new purchases, high prices, optimism, this is how the first development of the phase would come about. 

Optimistic behavior
If we were under the influence of the reduction of the interest rate the course of the economy would then start to tighten up the course of the economy and new news would arrive about the profit of the companies. The prices of the stocks would accompany this new optimistic development that has an economic base and would start their race of increase in a parallel way. More interested people would arrive to the market, speculators and small investors. In a given moment, thanks to the general optimism, the type of interest and the growing profit of the companies, this could turn into euphoria. More buyers would come who would elevate the prices a lot more. There would not be any risk seen whatsoever and only limited optimism would predominate. This phase would be an overreaction of the market. At this point in the game, the clever group that has bough their stock at very low prices at the beginning of the cycle, have already finished distributing their stocks by selling them to many naïve people, that has gotten into the party at the last moment. And even, many of them would be capable of obtaining credits to buy stocks taking advantage of the low interests. An overbought or expensive market that is loaded with credits is very dangerous; there is the risk that it could fall at any given moment, even where there are not any real motives for it. It is the typical case of a great number of inexpert and fearful stock holders who would like to get out quickly even though they were just making a minimum gain or even with a minimum loss. Leaving aside the fact that they lack experience, and given their financial situation, they should not have allowed themselves to buy stock maybe because they used money that should have been kept in reserve for other things or they might have done so by getting credit.