Seeing Outside Your View

Subscriber BD summed it up well yesterday: "Looking at a two month chart a clear channel from Oct 13 has formed but can't say which way we'll go from here, at least 800 points to the downside and at least the same to the upside."

Market up turn Tuesday, an exhaustive gap upside, penetrated 8458 once, before faltering in early afternoon trading. We did not trade calls on the upside, because of the fear of reversal, nor issue an alert for downside, as we continue to believe that the "shorts" may soon be covering their positions and could trade the market up again.

This is the highest risk and most difficult to read market I have ever experienced in 30 plus years of trading. I KNOW we leave money on the table in our sales, even though profitable to 50% often, and miss 200% returns for many, and I KNOW we provide signals that are 8 to 10 profitable. Do NOT be sad if you do not make enough money, but make some. Be glad you are making money, and take very prudent risk in this type of market.

Astute trader MF says:

Hey Floyd,

After the recession is over, do you think we will have high inflation? Eventually all this free money will catch up to us. Double digit interest rates could be in our future, I think.

Strange times - we're printing money and almost everything around us is deflating in value. It seems eventually the pendulum will go the over way.

Mike "

Dead right. It may take several years, but the reversing category will be high inflation, unless our new government can control this. There is NO option, I believe, to the printing of money right now.

__________________

In Napoleon Hill's Think and Grow Rich, one of the greatest books of all time, he teaches core concepts for "believing" and visualization, much of what the book The Secret successfully marketed to a CD and a book a 9 year old could read.

When you perceive an idea outside of the norm, your brain goes to work in different ways. It sounds so simple and yet is so very hard to do. It is stretching your mind.

This is what I mean by "seeing outside of your box" or your "view."

There are several different routes to forcing the brain out of its lazy mode of perception, but the theme linking these methods depends on the element of surprise. The brain must be provided with something that it has never processed before to force it out of predictable perceptions.



And lastly, a good note from a subscriber that may sum up FEAR and GREED best:

"Floyd, in the past 10 trading days I have made 38,900 off OEX Options, fighting you all the way:) I continue to be amazed by your ability to be calm in the storm and to so accurately predict both the Dow moves, and the mood of the market. I always now sell before the top or bottom, and my risk is always reduced. Your commentaries always make me think about myself, and just reading your work makes me think. Thank you for teaching me to be "suspicious" of the market, and of our leaders, and to trade around support and resistance. I've been with you for three years, and it's been great"-MDL, Texas