markets now

The short-lived pullback and subsequent reversal didn’t do much other than perhaps work off some of the overbought condition on Monday. As of this morning, we don’t have any new patterns to work with other than the overall trend, and while yesterday’s pullback failed to do much damage, it still invalidated Monday's breakout for Russell which is still important. While this divergence does not take priority over the continued strong price action, the bulls still needs to see that breakout occur as it will provide confirmation and increase overall probability that we will see the S&Ps rally extend itself back to the 2007 / 2008 highs.

While the market held firm again in yesterday’s weak pullback attempt, the intraday price action has become too difficult to navigate profitably as pattern failures are becoming more common in the whippy, low-volume, program-controlled action. This provides us a small tell that we could be starting to transition into a different environment than what we’ve seen, so must have patience here and use selective positioning until we have some better patterns to work with beyond just the intraday setups that come our way. 

socialist reality grows stronger

The solution for too much debt is not more debt - although that's what Europe and others seem to think the solution is. It's crazy. They should be forcing countries to cut spending, they should allow creditors to take big losses, they should allow people to go bankrupt. The idea of printing more money and buying worthless bonds instead of allowing people to go bankrupt is how you destroy an economy.


The way capitalism works is if you make bad investments, you lose money. In the US they've had states and cities go bankrupt a number of times, but it didn’t end their existence and the US dollar. You start over from a stronger base once you acknowledge your mistakes. That's what's capitalism is all about. Sadly, capitalism is increasingly practiced only in theory, while the statist and socialist reality grows stronger.

from the book "The Trading Tribe"

This is a paragraph I wrote about my experience with TTP  for " The Trading Tribe " book;


Through consistent practicing of TTP I came to the place in me where I accept and love myself more than ever before. I accept and respect others as they are and share more joy and love with my family and friends. I feel more trust in myself. I feel like I'm traveling lighter through my life journey. I can clearly see what I have, and can share with others. I know my purpose. I am staying more and more in the Now where everything is perfect.


for more information about Trading Tribe Process go to 
http://www.seykota.com/tribe/TT_Process/index.htm
or email me for more info on PGTribe

Looking at the week ahead

                                   ES_after Friday's close_click to enlarge


The up auction continues with anxiety running high at quarter end and S&Ps up almost 12% for the year.


Last week of March is the most bearish of the month_ so possible consolidation or even a nasty one day shake and bake action_ which would produce some new patterns for us to trade.


Remember, price predicts the future_not investors. 

Have a great week.

wrestling with revenge

If there is one emotion that is completely void of the essential quality of good sense, tolerance, accurate thought and wisdom, it is that emotion we call revenge. It quickly derails one from his definite chief aim, causes a loss of focus, drains one's vital positive energy and ultimately self sabotages one's own journey towards achievement.

And so it with us in trading, when caught in destructive quest to satisfy our desire for revenge, it blinds our ability to think accurately, become productive and lose sight of our goal.