Observations on
Psychology and the Markets
A consistent imperfect routine is way better than an inconsistent perfect routine.
When I've worked with investors that are new to technical analysis, I often find that they spend too much time trying to perfect their analytical approach on a particular chart, and way too little time determining which chart they should be looking at in the first place!
The last five months of market history are a blur for me. Back in mid-March, the S&P 500 was in free fall with no end in sight. Here we are in mid-August, and the S&P is retesting all-time highs. Trend-following is about defining the trend, recognizing shifts in the trend and anticipating potential trend changes. So now that the S&P 500 is in a raging uptrend with no apparent end in sight, what would I need to see to turn bearish?
This post has nothing really to do with food, except my Uber driver this morning was from Brazil. He was telling me all about Brazilian delicacies such as coxinha and pao de queijo and by the time we arrived at the hotel I was pretty much starving. But three quick market/behavioral observations to share with you on a Wednesday…
