Thursday, August 22, 2013

The Daily Note - $DJIA $SPX $NDX - Return of the Past

*****Coming back from a vacation is never easy no matter what your occupation. Besides the physical dislocation and relocation, the body clock adjustment and memories, one has to come to the realization that they have to adjust to being back to the way they were before; in other words, experiencing a return of the past. It's also true that it's in someway surprising that it does not take very long to adjust back because we're back to our comfort zone.

Can't deny that we like to come "home" because it lets us relax another way; knowing that the familiar is still there, we feel safer and  more comfortable.  It's been studied, and it's no surprise, that many people experience more stress during vacation than when at home and feeling safe and feeling comfortable are of high importance for our feeling of well being; until we need a new adventure or a break(away)out again.

So now it looks like we are on the way to another revisit of the past or return to a comfort zone.  When looking at the markets, I am for the first time realizing that it too experiences the return of the past when the pullback revisits areas it has been before. It's a different view than I have had before.  Yes, it can be a test and consolidation, a check on the past before courage for the new; taking comfort in the past that it is still there as a support.  Looking at the markets in this light may help you eliminate the negative view of a pullback and perhaps help you see that it is just a natural flow.  In other words there is no negative in comfort nor is there negative in a new adventure, or the next possible breakout.

Southern Comfort Zone by Brad Paisley on Grooveshark

Happy Trading, Living and Dancing

The Outlook - $DJIA $SPX $NDX

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