Tuesday, October 8, 2013

The Weekly Outlook - Patterns and Reasons ~ $DJIA $SPX $NDX

*****When markets rise and when they fall, followers look for a reason or for reasons. The bigger the rise, or fall the more people tweet, write and talk about why and the wherefore of its rise or demise.   Actually, in my opinion,  it was already foretold in the charts and reasons are searched for after the fact while patterns largely ignored.  So the question is do patterns follow reasons or reasons follow the patterns?

Perhaps we have been duped into not seeing the obvious, over time, in order to keep everyone interested in our opinion.  Perhaps it was ingrained in us since babyhood when our parents kept naming reasons for every move or function we did as if it was a long unknown mystery never seen prior to our birth. Even though patterns of behavior have been known about babies and children and occur the same way most of the time.

You may argue that each baby and child is unique and you are correct again, I agree, but still the patterns of growth and development are played out regardless of that fact. Rarely do they make a different turn in which case reasons are seriously needed, but until then, reasons are the patterns and nothing more.

If it were not for patterns and the usual scenario with them, we could not function as a society nor would there be order in chaos. We all agree to behave in a certain way in a certain situation. That is a pattern. and we don't look for reasons for them in our everyday lives. We grow and develop and age in a pattern. When someone does it differently or acts a.b. normally (thanks Young Frankenstein) we notice and then we ever more look for the reason until we're satisfied and perhaps put it in yet another pattern box.

So each time a pattern plays out in our day to day living and acts as we expect, all is well in our lives and our world, unless we're traders and follow the markets in which case, each move within or without the pattern has to be analyzed as a new born baby.

Reasons Why by Nickel Creek on Grooveshark

Happy Trading, Living and Dancing

 The Weekly Outlook $DJIA $SPX $NDX

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