Dynamic Trend Profile

You know, when I came in this morning, all the news was really negative, primarily because the Nikkei was down big time. It was called a "meltdown."

When I looked at a the futures contract traded in Chicago, it doesn't look as bad as one might think. It looks like the Nikkei has had a really good eight month rally with very limited pullbacks.

Yes, the current pullback is a little bit problematic for those involved, but when you put it into technical analysis perspective, it isn't even a 25% pullback from the May low. It just appears to be a necessary, healthy pullback is all. It's not, in my opinion, signalling the end of the world as we know it. It might just be showing a return to normal market behavior?

(see attached chart)

DAX opend 160 ticks down but for the moment it is "only" down 100 ticks. 100 tick is 1250 euro. That is one of the reasons I am a day trader. Regards Helgo

Here is why I try to temper reactions to daily news. What was the word meltdown one day in Nikkei, it implies something off concern, or pretty negative. Yet, in this case, a new high a week or two later it the Nikkei ends up at a new high. If you walked in and overreacted to the news, you might have missed out on the opportunities that come from pullbacks. Meltdown was an incorrect word to use for that pullback. (Scroll down to see original post) I said it wasn't the end of the world, and in reality, it was nothing more than a deep pullback and in hindsight looked like a good buy opportunity.