There were two major events last week, the US markets made an all-time high and my e-Book was released.
Perhaps one event more major than the other but let’s take one at a time and examine the correlation, if there is one.
I sort of love the way the markets continue to fool many people with their expectations and predictions. Trump was not expected to win and the markets were expected to go down if he did, and what happens? The opposite, Trump wins and markets rally. In fact not only did they rally, but from a “technical” charting perspective, an all-time high is regarded as a very strong sign for further rises. You can see the chart below of the Dow Jones index, the gorilla index of the US market, clearly breaking to new highs.
In my last newsletter I suggested the markets were oversold, but I can honestly say I didn’t “expect” a rally of that strength. If you like you can re-read that newsletter here and my comments about the dangers of prediction and expectation in your trading.
It appears that in hindsight markets were oversold and a relief rally occurred. Despite the naysayers some analysts continue to have faith in the US economy and this faith is certainly being reflected in the charts. Buyers are overpowering sellers so prices continue to rise. Will this continue and when will the bull market end? If you are a regular reader you will know my next statement. I don’t know! I regard prediction as a foolish desire to alleviate fear and anxiety, far better to have a thought process governed by an understanding of winning probability, which leads to the second major event I mentioned, my e-Book.
Mindful Trading using Winning Probability
The above is the title of the book. The book explains the concept of using probability to win at trading, combined with discipline and focus, which is really what mindfulness is.
The book also contains a weekly trend trading system, stating the rules and process to follow, details and examples of past performance, extensive written explanation of each rule accompanied with charting examples.
However most importantly, where the winning probability exists in this weekly trend trading system and why.
To download a free brief example of the book or to purchase the full copy, click on the link below.
The portfolio on the website is currently one third in cash after some stocks being stopped out (some in profit some not) during the last few weeks of nervous trading. The portfolio has given back some profit but is still up a nearly 60% in 2.5 years and is well positioned for whatever happens next. You can view it in detail here.
The Australian market, the same as many overseas markets are influenced by the performance of the US markets. This week has been no exception with the All Ords rising strongly, if US markets continue to rise the probaility is that ours will follow.
A politician needs the ability to foretell what is going to happen tomorrow, next week, next month, and next year. And to have the ability afterwards to explain why it didn't happen.