Wednesday, October 7, 2009

Post Market Thoughts IV

"Frankly, this will be an interesting day, but then which day is not? None of us have seen such times as these with what seems like USA standing on a precipice waiting for a parachute. Signals look like we’ll fly at least for a while, but I don’t like to use a broad brush on the markets, because that creates an expectation. So keep a clear mind and look at each chart as a world of it’s own."

I posted that in this morning's comments in @Tickerville with my calls, and it is what became very evident as the day unfolded. When we put expectations no matter how minute in our thoughts, we automatically skew our sight. It's just nature. It makes no difference if it's positive or negative because it picks no sides, a bias is a bias and that's what will reflect on your picks, entries and exits. You may not even notice it it's so subtle, unless at some point or another you catch yourself trying to push it, like I did with MA once the last target of $210 was hit. I saw more bullishness because I wanted to and forgot to check further out as is my normal custom. The $211.18 strong resistence did not show up on the 60 minute chart, where my focus was on the potential cup rim of $212.00, but it was clear as a bell on the daily; only I did not look. Never mind that it came very close by hitting $211.50, the point is that the pullback from that level was natural and I almost took offense. Human nature when one is in mode of expectation and it can cost missing an excellent exit.

I am telling the tale only because the after hours earnings today have put an expectation about tomorrow already into our minds. So how you or I start our day, will totally depend on how clear we can approach the markets in the morning, by how well we will eliminate thoughts that could give our vision a false picture.

Our minds are like a camera, and it's not true that pictures don't lie; they always do in fact, but the clearer you can see the whole picture the less the lie can take hold. So here's to tomorrow and a clean, clear, slate where anything can happen.

Happy Trading, Living and Dancing