Reflection.

Don Quixote, despite being delusional, saw in people more than they ever possessed. He meets Aldonnza, a farm girl (a woman of the “oldest profession”) and, either blinded by love or insanity (probably both), he sees only a lady in her, and starts treating her like one, calling her by another name, Ducinea. She knows that she doesn’t deserve this treatment, but she starts believing him, and this belief transforms her into a different person – she aspires to be the person Don Quixote sees in her. My grandmother was like Don Quixote: she always saw a much greater person in me, though I rarely deserved it (she really had a rich imagination); and I tried to rise to become what she saw. Now that I’m a father of two wonderful men, I do the same for them. The little things we say to our kids and others really do matter!

Markets now.

afterhours:  From here we can begin a swing higher short term window dressing, push-squeeze play trade OR a full-blown breakdown below the August lows.


Remember, the top three priorities in trading: First, is preservation of capital. Second, is consistency in executing your plan. Then pursue the third, which is superior performance

Bears in town.

                               premarket:  watching for downside follow through

Wisdom.

I see the younger generation [of hedge fund managers] hampered by the need to

understand and rationalize why something should go up or down. Usually, by the time that

information on fundamentals, and what little information one could get was largely imperfect. We 

becomes self-evident, the move is already over. When I got into the business, there was so little

learned just to go with the chart. Why work when Mr. Market can do it for you? These days, there

are many more deep intellectuals in the business, and that, coupled with the explosion of

information on the Internet, creates the illusion that there is an explanation for everything.. There

are young men and women graduating from college who have a tremendous work ethic, but they

get lost trying to understand the logic behind a whole variety of market moves. [At the end of a

bull market or bear market] there's typically no logic to it; irrationality reigns supreme, and no

class can teach you what to do during that brief, volatile, reign.

-Paul Tudor Jones

Capital preservation still remains the most important priority.

Tomorrow we'll see if today's action can be shaken off and we get end of quarter push up trade or we go down to test and potentially violate that lower flag line.