Study the Facts

"Of course, the people don't want war. But after all, it's the leaders of the country who determine the policy, and it's always a simple matter to drag the people along, whether it's a democracy, a fascist dictatorship, a parliament, or a communist dictatorship. Voice or no voice, the people can always be brought to the bidding of the leaders. That is easy. All you have to do is tell them they are being attacked, and denounce the pacifists for lack of patriotism, and exposing the country to greater danger".


This statement was made by Hermann Goering at the Nuremberg trials. My fear is that you repeat a statement enough times it becomes a fact to the voters.

It is FEAR politics that successfully reelected Bush, and if smart, the Republicans will try the same "good vs. evil" fear of terrorism as their only ploy.

Study the facts.

It is now FEAR economics that is creating even more concern, without even knowing the impact of the decision making.

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The key to trading successfully is understanding yourself. It is your own psychological fitness that defines your use of what you know. What you know and do will be different always only because of your emotions, your You, and how you trade your You.

Read this statement carefully. It's key to your success.



Trading is much like drinking alcohol or using drugs. It is how you manage the effect that is key. If you are unable to manage it you are addicted, not trading, where the trade may be powerless over his own behavior, and unmanageability.

No, you are not an addicted trader. No, trading is not using drugs.

But, you could be. And it could be like using drugs.

Everything is how you see and allow your YOU to be.



Yesterday's market was a perfect example of FEAR. The market hit a theoretical Dow bottom of 10,787 in morning trading, allowing traders to take a second buy on the August570C. Two buys averaged this contract at 10.80, and it sold to 14.00 by 2 p.m.

We were profitable on Monday's put, Tuesday the call, amidst whipsaw that never seems to stop.

America does not believe the government on Fannie and Freddie. It showed. Paulson's pitch was questioned by many, and the market continued to hesitate. Then, GM, unable to produce a car intelligently for many years, discussed restructuring to "stay in business". Ask Floyd: Fire all the top people at GM at one time, and start over. Nothing else will save this company from itself, until Toyota buys them.

In the past two weeks the market has blasted through every major support line, and hit new and deeper bottoms, 2 years of historical patterns broken. Upside moves may be short lived, and we do expect the whipsaw to continue