Trading is going to be light next week so I think I’m going to keep one eye on the markets while lightly trading and reflecting about the past year in trading and blogging. I posted my 500th journal entry this month and I’m going to be looking back and analyzing how blogging has helped/hurt my trading, and see if it effects my trading at all.
One post that always cracks me up is a video by Jefferson Krull from hitthebid.net at the height of the market collapse on the 10th of October . I often watch this video whenever crazy stuff is going on in the markets and I want a good laugh (I especially like the part about riding steeds) or when I want to be reminded about how crazy the markets can make you.
On a side note, back in October after I watched this I thought to myself “this has got to be the face of capitulation”, so maybe we’re at a bottom. I pulled up a chart of the Dow to see how close I was to picking the bottom based on Krull’s lunacy and I was pretty surprised at the accuracy. Take a look for yourself at what 7 straight days of massive selling can do to you. This post was done on October 10th, which happens to be the exact day the markets bottomed on that down cycle. Yes it rallied, faltered, rallied some more, hit news lows, blah blah blah, but I found it interesting that it was on the exact same day the market hit a low. I also think that everybody who survived this year is going to be a lot wiser for having witnessed just how quickly things can go awry in the financial markets the next time a crises like this hits.
Oddly enough at today’s price on the Dow I just realized we’re almost right were we were on October 10th. Three months of price movement for a whole lot of nothing.