Finally, our calculations on the US Dollar and EUR-USD kicked in and we have a potential 90dg game changer on the Euro.
It was a great run but it’s probably done what it can do. The hope now for all but Romney supporters is it inverts on a pullback into the middle of October to allow markets to find a major low as opposed to the top it seems intent on forming. If you are for Romney the only that will save you is a correction RIGHT NOW.
But I think the US Dollar is set up for a rally right here and this could be the week the market finally takes a breather. But I’ll leave with this thought. Sectors and individual stocks will get hit long before the major averages do. They’ve held up but the Transports as well as other areas are off the highs. It has to happen now because once we get into October we are in the big time window and it could come a week early. NOT THIS WEEK BUT NEXT WEEK would be considered a week early.
The other night in my weekly freebie newsletter I shared a lot of personal spiritual stuff. I debated long and hard about doing that with a secular audience. I have to tell you that the feedback I got was 100% supportive and I received more letters than I have from anything I’ve ever written. I heard from people who I haven’t heard from in YEARS. It gives me the impression many of you are hungering for this kind of commentary. It’s not the kind of thing easily revealed to traders but it tells me you love this business and are tired not only of the shenanigans in this industry but the bickering and nasty tone set by this campaign cycle.
The 2 most important traits you can have are wisdom and humility. Wisdom will help you anticipate what is coming next and allow you to keep the discipline not to make dumb emotional trades. Humility will keep from imposing your will on the markets. Remember, the market doesn’t know you exist so why try to impose an agenda? It’s your ego that doesn’t allow you to admit you are wrong.
Finally, since it’s the end of the month, look for my new article on market psychology in the October issue of this magazine.