Is this the start of the Santa Clause Effect?

The Week

More crazy reactions out there this past week.  The herd reaction to the Consumer Price Index report had overnight prices gapping up.  Then Big Money flowed in and kept the prices high.  I am asking myself is this the start to the usual uptrend we tend to see over the holidays?  Frankly, I am not sure plus lately the herd’s reactions have been somewhat difficult to anticipate.  We could see a sell off as people take some profits off the table or the Santa Claus effect could take hold.  It still feels like a roller coaster ride to me.

Looking Ahead

Most of the time I feel pretty confident anticipating the Market directions day-to-day.  Those of you on my webinars know my right “guesses” average better than an 85% accuracy rate.  The accuracy rate has dropped a little down to 76.2% for the past few weeks.  Because I base some of my trading on what I think will be unfolding, that accuracy drop has adversely affected my returns.  That will happen to every trader now and then.  The key is not to let it undermine your confidence.  I wear a pendant necklace with one of my favorite thoughts engraved on it.  I shared this on my webinar after going over my results this past week.

Fate says to the Warrior ‘You will not survive the storm’.

The Warrior whispers back ‘I am the storm’.

How am I Doing?

It was a losing week as I had one trade kick my butt.  I am down $2,160 for the week.  The good news is I still am up for the year and for the 6 weeks of our live trading DATA class.  The trade I lost on was a high risk trade that I ended up on the wrong side of.  Like I said this occasionally happens to everyone. The key is to rethink the trade, see where you went wrong and then set yourself up to correct those thought errors in future trading.  I went through this whole process on the webinars this week because I believe you can learn more from your failures than from your successes