Financial history doesn't repeat itself, but it often rhymes. You can't be stupid enough to trade off anything I say.... I'm lucky they let me out of the straight-jacket long enough to trade.

J. P. Morgan

"Sell down to your sleeping point"

Thursday, August 7, 2008

Emotional Decay.

I've talked before about the Emotional Decay pattern in the market.

Maybe with continued weakness in oil/dollar strength. for the next few days we will see a nice up-move, and the decay will continue. I'm talking about a decay of the Bear emotions, and a Build to a Bullish sentiment, that would make a good place to "Short".

The green and red line up there just shows negative vs Positive market... we have now established a pattern of 3 down days and 2 up days.....Will that continue? or will my trading Axiom of "Something that works twice doesn't work 3 times.

Today we had a return of the "Financials are going to kill us, it's never going to end... the national nightmare is not over."

I expect that emotion to decay as time goes on. Till we hit some Euphoria/Bear Capitulation.

But I don't want this to go on for more than tomorrow. Also, that pattern is a 5 wave pattern... but it does break some of the astrology Mojo. For those Generals fighting the last war This is how the 90 recession ended..... similar pattern over 2 months....

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