The market had a sharp downside breakout of a flag pattern (low day at beginning of July). The very next day the market more than recovered the entire loss rallying back to the top of the flag pattern. The false breakout of the flag, as confirmed by this rebound day, provided a bullish signal, as the market continued higher for the remainder of the week. The illustrated failed signal proved to be a major turning point. The market subsequently skyrocketed, gaining nearly $400 in two...read more
Japanese yen daily Major earthquake hit at night. Initially yen went lower (red oval), but only a little bit. I was short and remember seeing this on TV at night and thinking I should get up and cover position. I didn’t. Market skyrocketed. There was repatriation explanation for strength after initial response reversed, but reversal of initial response is the key. LESSON: Failure to respond after major news item and reversal of initial response is important...read more
An article by Jack Schwager.
Financial Times, March 18,2009
Click here to read the artlicle.
To read the interview by John Nyaradi, click on this link.read more