Stocks & Emotions
The US Stock Market: This is another update on the Markets as this is in the economic 'news of the day' almost every day now for the last week or so.
The S&P 500 Stock Index shown in the chart below), Nothing (as yet), has changed about this still being in a huge BULL Market! Granted, there's been some healthy pull-back in price as shown in the chart below.
In point of fact, the recent pull-back which has everyone in a panic and confused state, still hasn't even matched the pullback in prices that we saw last March. This same price pullback would have brought prices down to the price level shown to the green angle line on the above chart.
However, we are getting close to an important pivot price point and, this bears watching and making a 'Plan B' once prices cross the green angle line shown on the above chart.
This post is merely to update and calm nerves. We need to keep perspective and stay rational. If we let emotions anywhere near investment decisions, we come to regret it.
How does one stay rational? Use the 'dullness of History', to calm ourselves down.
Nothing compares to 'history' or, in our case, historical charts to bring this about, Old, historical charts of similar market conditions will show us how people, as a group, acted in the past. This will bring both a sense of perspective and the emotionlessness of understanding that people today won't act much differently than they did in the past.
This should bring us a sense of Calm, as, People haven't changed and will repeat again what they've done before as a group. This is applying Perspective and Understanding that can guide our way into the days and weeks ahead.
Can we have another Global Finacial Panic as we did in 2008?
Sure, and the fundamentals are in many ways even worse today than they were back then. However, our focus & philosophy (adopted Mr. Gann's own writings) on this website is to 'track' the market charts and let them 'do the talking' and not outside 'authorities' (who may have ulterior motives for their 'news').
And, what does the chart 'say'?
It says: 'Caution', not Panic. Timing is everything here and, acting too premature to the truth of the charts can be dangerous. Patience is our greatest tool at points in time like this. - George