Fish Tank Psychology

"If you show an American an image of a fish tank, the American will usually describe the biggest fish in the tank, and what it is doing. If you ask a Chinese person to describe a fish tank, the Chinese will usually describe the context in which the fish swim. Americans usually see individuals; Chinese and other Americans see contexts. What happens if collectivist societies, especially those in Asia, rise economically and come to rival the West? A new sort of global "conversation" will develop. The opening ceremony in Beijing was a statement in that conversation. The most striking features were the images of thousands of Chinese moving as one-drumming as one, dancing as one, sprinting on precise formations without ever stumbling or colliding. It was a high tech vision of a harmonious society, performed in the context of China's miraculous group."

What we know is NOT all that is, and NOT all that may be.

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I have been dead wrong on the market this week. After Tuesday's run up to celebrate "no hurricane" each downturn has been sharper and on higher volume that my projections. Of interest, our projections were strikingly accurate until this last turn, and it is the stronger turns that last that I have missed in January, June and now. These are not chartable downturns, but have typically gone to support lines.

6 times historically, once the market hits a 100 point upside, we have seen 586 point average agains, and I had seen a gain off the most recent bottoms. We do not know when the blood letting will stop.

In Washington, they are arguing whether we have inflation or not.

We will stop loss the Sept610Call today (we suggest stop loss for all traders) our loser of the week. A first buy should have been made for any new traders to the Oct585C.

Puts may have more downturn, and we've listed new Dow projections. Hurricane Ike is not a reason to hold puts or calls over the weekend in new trades. We would prefer to watch the reaction to McCain's babbles last night (Sara the soccer Mom for President), and to see where the market trends before any recommendation.