History told us we could get a retest and that's what we got. ( check last Wednesday blog ) Now we need to see if selling starts to slow down before doing any buying.

It's very important that we don't get a bad close on an elevated volume.

Does that make war with the US inevitable?

Thucydides (thu-cid-did-dees) was an Athenian general. While he was born in Athens,
his family was from a town in northern Greece called Thrace. There, Thucydides owned
gold mines. And those mines provided him with the money that gave him time to pursue
his real passion: history. Thucydides lived from 400 to 460 BC. In 424 BC, he was given
command of an Athenian fleet, but his command was short-lived. Because of a strategic
failure, Thucydides was exiled from Athens for more than 20 years. It was during that
time, and after, that he chronicled almost 30 years of the famous conflict between
Athens and Sparta in a manuscript titled History of the Peloponnesian War. Because of
that book, Thucydides became known as the “father of scientific history.” Thucydides
knew that the war between Athens and Sparta would be more than a simple skirmish, so
he started writing about it almost as soon as it broke out. Indeed, the war lasted a
staggering 27 years. As you may know, Sparta won the war, thanks in part to the
financing it received from Persia.
Thucydides and the Peloponnesian War are fascinating subjects. But what’s even more
interesting is the larger picture. Before the Peloponnesian War, Athens was a
superpower of sorts, and, it quickly regained that status about 30 years after the end of
the war. But the point is not who won the war. What’s important to understand
is that Sparta was a rising power on an unavoidable collision course with Athens. And
the Peloponnesian War is just one example of these types of rising power/super
power conflicts. As Harvard scholar Graham Allison points out in his excellent book
Destined for War, this kind of conflict has happened many times over the last 500
years – sixteen times, to be exact. Among those conflicts are World War I
and World War II, of course. But there were 10 others. Twelve of those 16 conflicts 
ended in catastrophic wars. Allison says that in many cases those wars were 
unavoidable. They are inherent whenever a rising power threatens to surpass an 
existing superpower. He calls it the Thucydides Trap. And now, Allison believes the US
and China may well be caught in Thucydides’ Trap, too. They may be destined for a war
that neither wants but neither can avoid. Eventually all it takes is a spark to set off the
war. Often the spark comes from a completely separate third party.
In World War I, that spark was the assassination of the archduke of the 
Austro-Hungarian Empire. What will the spark between the US and China be? 
It could be Taiwan or Hong Kong. Or even the escalating trade war.
But is there really that much tension between the US and China? Consider that the 
20th century was known as the Golden Century for the US. Yet it was known as the
Century of Humiliation for China. Allison also reminds us that the Chinese ruled Asia for
4,000 years, so they are used to being #1. In fact, the Mandarin word for China means
“center of the universe.” And yet, don’t most people in the US believe the US is #1?
There simply can’t be two #1s. While Trump has vowed to make America great again,
Chinese President Xi Jinping vowed to make China great again long before Trump was
in office. Part of President Xi’s strategy is complete, authoritarian control. We know that
didn’t work so well for Russia, and we believe that market economies work better than 
centralised control. But China has some things going for it that Russia never had. China
is a big enough market that American companies are clamoring to do business there.
Yet even as they do business, China steals their intellectual property. The Chinese don’t
have to innovate when they can replicate. Plus, China can make things happen fast, 
because it plays by its own rules. The president is like a corporate CEO. A democracy
may trip over itself trying to get things done, but Jinping’s agenda gets implemented
quickly because there is no one to stand in its way. While it might take five years to
build a railroad in the US, a similar project gets built in five months in China. That’s why,
according to Allison, 40% of the world’s total growth since 2008 has come from China.
Yes, China is moving full steam ahead. What do you think, does that make war with the US inevitable?

History in the making; Marijuana is officially legal in Canada !

Buying and using recreational cannabis is legal as of today, October 17, 2018, and Canadians are already making purchases online and in retail stores across the country.

SPX - As we rally into the 50% retracement area caution should prevail as our February recovery rally failed at that point and after we stalled the market fell to lower lows.

                                      Storm is not going away yet !

Don't feel bad when "stopped-out", it simply means begin again at one level higher.

Talking heads are talking about sector rotations, sure there is a rotation, but into cash.

'Your current limitations or failures are the building blocks from which to create greatness. You can go where you want to go. You can do what you want to do. You can become what you want to become. You can do it all, starting now, right where you are.'

If you can't make money trading, all you have to do is change the rules.

Some of the best stock traders in the world are now over 90 % in cash. What are you doing?