Bear Market Confirmed
By Colin Twiggs
January 9, 2:00 a.m. ET (6:00 p.m. AET)
A short note to wish you peace and prosperity in 2008 and to remind readers that our regular newsletter service resumes next week.
Unfortunately the new year has not had a good start, with both the Dow and S&P 500 breaking through primary support after the recent market top. The two major indices, in conjunction with the Dow Transport index, now confirm the start of a bear market.
The S&P 500 breakout below 1400 signals the start of a primary down-trend.
In speculation when the market goes against you, you hope that
every day will be the last day — and you lose more than
you should had you not listened to hope ........ And when the
market goes your way you become fearful that the next day will
take away your profit, and you get out — too soon
........ The successful trader has to fight these two
deep-seated instincts. He has to reverse what you might call
his natural impulses. Instead of hoping he must fear; instead
of fearing he must hope. He must fear that his loss may develop
into a far bigger loss, and hope that his profit may become a
~ Jesse Livermore in Edwin Lefevre's : Reminiscences of a Stock Operator.
To understand my approach, please read Technical Analysis & Predictions in About The Trading Diary.