DIA | SPY | QQQQ

After all the break-downs that have occurred over the last couple weeks, now seems like a good time take a step back and look at the big picture.

Major Indicies Only:

DIA: Best looking chart of the bunch. Everyone is watching this trendline and it will likely set the stage for a large rally - even if it's a short-lived one.

SPY: Things certainly look a little more obvious with hindsight on our side - such as the retracement back to it's long-term trend line before immediately being rejected. It reminds me GOOG ....and probably a thousand others. I have now committed this pattern to memory.

QQQQ: Similar to DIA.


I leave you with this; borrowed from a book that I'm currently reading (even though it was published in 1993):
Trading for a Living: Psychology, Trading Tactics, Money Management

The market does not know you exist. You can do nothing to influence it.

You can only control your behavior.

The ocean does not care about your welfare, but it has no wish to hurt you

either. You may feel joy on a sunny day, when a gentle wind pushes your

sailboat where you want it to go. You may feel panic on a stormy day when

the ocean pushes your boat toward the rocks. Your feelings about the ocean

exist only in your mind. They threaten your survival when you let your feelings

rather than intellect control your behavior.

A sailor cannot control the ocean, but he can control himself. He studies

currents and weather patterns. He learns safe sailing techniques and gains

experience. He knows when to sail and when to stay in the harbor. A successful

sailor uses his intelligence.

An ocean can be useful-you can fish in it and use its surface to get to

other islands. An ocean can be dangerous-you can drown in it. The more

rational your approach, the more likely you are to get what you want. When

you act out your emotions, you cannot focus on the reality of the ocean.

A trader has to study trends and reversals in the market the way a sailor

studies the ocean. He must trade on a small scale while learning to handle

himself in the market. You can never control the market but you can learn to

control yourself.