We Ran One Back For A Touchdown Today

   

When everyone is looking for more upside, I
sit back and consult my charts. 

When everyone is convinced a pullback will be short and lead to a
rally, I sit back and consult my technical studies.

When everyone talks about indicators such as the 10-day TRIN ruling
the universe, I sit back and verify the conclusions of my work.

At the end of the day, we have no one to blame for our failures or
shower with accolades for our success other than ourselves. If your
work leads you to a conclusion, do not sway in your resolve because
someone else sees something different.  My purpose is to not only
teach you certain things I look for from a technical and charting
standpoint, but to teach you the proper mindset of a successful
trader. 

It is inevitable that during the course of our trading endeavors our
emotions sometime take control of our actions. These emotions being
fear, greed, complacency, arrogance, uncertainty, etc. It is of
paramount importance to a trader to be steadfast in his/her resolve.
Many simply claim “I’m a trader, I don’t care what direction the
market goes, I just simply go in that direction.”  Oh yes,
it is quite simply that easy. In that case, everyone should be making
millions of dollars by simply jumping on the direction of the market’s
movement. Unfortunately, I find trading to be a little more
complicated than that. As such, I have immersed myself in years of
education, training, and correspondence with the finest trading minds
in the country. At the end of each and every trading day it is my rule
for everyone in this office to write down what they learned during
that trading session and to learn from the new “lesson” they
were taught. 

This is a game that doesn’t hold a “holy grail.”  It is
a game that requires constant adaptation, self-enrichment, and
growth.  I personally grow as an individual and a trader by
learning from those around me who do things differently than
myself.  As such, I am able to sift through an endless stream of
information and selectively retain the elements that I wish to add to
my arsenal of analysis. There is no single right way of looking at
anything in the universe, nor is there a single wrong way of
evaluation.  It is up to each of us, individually, to chart the
path of our destiny. Those who have the right mindset will prosper.
Those who don’t will perish.

As such, in the face of quite a bullish consortium of commentators and
advisors throughout stock market land over the past few months we have
maintained the conclusions of our analysis, which has pointed to a
systematic journey to consecutive lower levels of support in the major
indexes. Certainly, the emotional gap up in the futures from July
12th’s bogus Microsoft “good news” is being closed and being
done so in dramatic fashion. We have now entered an area of
support from multiple gaps up in the Sept. ’01 SP futures contract
(remember the gaps that were created when the institutions were
front-running the not-so-surprise rate cut?  yeah, those).
Reference your charts and the multiple charts I provided in prior
commentaries as to futures areas of support as we are now upon
them.