The market moved to our 12,340 top (12,347) after a slight reversal to our 12,220 bottom. This allowed traders entry into either the July620C at 12.40, sales to 14.50, and for those traders still playing the July600C buys as lows as 25.40 with sales to 27.50. The market downturn yesterday morning showed good support, and a normal reaction to the upturn we experienced Friday, especially around again rising oil prices.
We continue to see a potential for a nice tight burst to the upside, and are positioned accordingly.
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The money that Halliburton profited from being the sole provider, non bid, to Iraq on many "redevelopment" models helped fund the move of this multinational corporation headquarters to Dubai in the U.A.E.
The shame of this should be leading our outrage, not $4.00 per gallon gas, which we well deserve.
The fuel for our gas guzzlers is NOT even a small part of our energy crisis, and we aren't smart enough to know it. The shame.
Arab investors have bought the Chrysler Building. The Italians grabbed the Flatiron Building. A Belgian firm bid for BUD. (We own this issue in Blue Chip Options, now up 25%)
84% of all Republicans, in June 08, in a TecnoMetrica Market Intelligence survey, believe a victory is important in Iraq, and 82% do not believe the war is lost. 57% of all Americans do believe the war is lost.
7 intelligent people, I guess, believe there was no real reason to even go to Iraq, and that a "victory" is and was impossible.
But 86% of Republicans are still hopeful that there will be success in Iraq.
As one of the 7 intelligent people, I guess again, I'll ask: what are we fighting for, what were we fighting for, and is the cost of our children and our deficit worthy of "stablizing" the Middle East?
It is this kind of thinking, coupled with our lack of understanding on oil (Drill Florida for example) that should frighten us most.
Fear of terror, fear of "not having", fear of admitting our failures should frighten us all. Yet again, we lock the barn after the horse is out.
It is important to understand this as I rant, as it is this excess that has caused our market decline. Subprime came from GREED, and no controls. False financial statements from conglomerates came from excess, and no controls. $4.00 gas came from not understanding where oil comes from, that its supply is not endless, and that other countries as they grow and develop will have demands even greater than ours.
In the U.S. the United Auto Workers have the audacity in recession to strike. As you "feel for your neighbors", watch this video and see the future.
http://info.detnews.com/video/index.cfm?id=1189
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Trader MP just read a great book, and shared a book report we thought might be interesting:
Trading in the Zone by Mark Douglas
" FOCUS POINTS
All beliefs demand expression – in other words, what you believe to be true, whether you are aware of it or not, will manifest itself in your behavior. (Floyd calls this: all things are not as they appear)
Beliefs keep on working regardless of whether or not we are consciously aware of their existence in our mental environment.
In order to change our behavior…we must change our core beliefs.
ELIMINATE THE EMOTIONAL RISK: A successful trader thinks in probabilities. A probabilistic mindset pertaining to trading consists of five fundamental truths:
Anything can happen. Accept the FACT that you DO NOT know what is going to happen next.
You don’t need to know what is going to happen next in order to make money.
There is a random distribution of wins and losses for any given set of variables that define an edge. A losing trade in inevitable. Winning trades are also inevitable, providing you trade with an edge. You DO not have to win every trade to make money. As a matter of fact, depending upon your risk to reward ratio, you don’t even have to win the majority of your trades to make money.
An edge is nothing more than an indication of a higher probability of one thing happening over the next.
Every moment in the market is unique. You cannot KNOW for sure what is going to happen next. You can have hunches or feelings, but do not EXPECT to be right.
These five fundamental truths about the market will keep our expectations in neutral, and allow us to focus our mind in the “now opportunity flow.” Being in the “now opportunity flow” or “The Zone” will eliminate our potential to commit the following errors: Hesitating, jumping the gun, not pre-defining our risk, defining our risk but refusing to take the loss and letting the trade turn into a bigger looser, getting out or a winning trade too soon, not taking profits, letting a winner turn into a loser, moving a stop closer to our entry point, getting stopped out and watching the market trade back in our favor, or trading too large of a position in relationship to our equity.”
From page 121, “Your potential to experience emotional pain comes from the way you define and interpret the information you’re exposed to. When you adopt these five truths, your expectations will always be in line with the psychological realities of the market environment. With the appropriate expectations, you will eliminate your potential to define and interpret market information as either painful or threatening, and you thereby effectively neutralize the emotional risk of trading. The idea is to create a carefree state of mind that completely accepts the fact there are always unknown forces operating in the market.
A consistent winner is one who has a steadily rising equity curve with only minor draw- downs that are the natural consequence of edges that didn’t work. If producing consistent results is your primary goal, then creating a belief “I am a consistently successful trader” is our main objective. If that is truly our core belief…the belief will manifest itself, hence money will be earned from the market."
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