LET THE RIVER FLOW

In 2003 one can SEE THE FLOW IS UP!!! Now from 2007 TOP we see the river flow is DOWN.....no sense in fighting it....so when we go long and it isnt long an inverse....we understand its against the FLOW....the avg investors cannot even find the river let alone kayak down or up one......WE have the advantage my friends...


http://www.iitm.com/articles/flow-of-the-markets-by-van-tharp.htm complete article from Van Thorpe.

Buy High, Sell Low?

One of the oldest adages in market psychology is "Don't be afraid to buy high and sell low." Let's analyze what that means. If the market price is high, then the market is moving up. Those who are afraid to buy because the market is too high are fighting the flow of the river. It is possible the river may change direction, but you cannot predict if it will by determining how long it has been flowing in a particular direction. It may continue in the same direction for an unspecified length of time. Then again, if the market price is down, it also indicates the direction of the flow of the river. Those who are afraid to sell, once again, are fighting the flow.

Why do traders resist the flow of the markets? They do so because they play psychological games with the market. The most common game involves not being willing to give up what you perceive to be control, the need to be right, although you have no control over the market flow.
When you are struggling with the market, the struggle becomes all consuming. You don't realize that you are struggling with the market. Instead, you find yourself always looking for some solution to overcome the struggle.

The struggle obscures the obvious solution: Letting go.


**Now not all segments bottom at the same time, look how well FNM and FRE have done with FED backstopping? and mortgage rates have climbed....how much control of the situation then does the FED REALLY HAVE?

http://www.iitm.com/Weekly_update/Weekly_382_July_23_2008.htm Implications of a SECULAR BEAR MKT another good read.

D