Biorhythms in the Market?

Still making mistakes, but such is the nature of playing the game.

Reasons not to buy or sell:
- Has gone up too far
- Has gone down too far
- Tip from (fill in the blank)
- Opinion from investment guru, (fill in the blank)

So, I guess that leaves us on our own.

Observations:
- SP500 stocks that are oversold by stochastics are extremely low (bearish)
- NYSE stocks above the 50 day average (www.stockcharts.com type in $NYA50R) almost 80% (very high, implied risk increase)
- NYSE breadth (Mamis-Meisler oscillator) 751 yesterday, second highest in the past year
- NYSE new highs (15)...divergence

All that being said, "the market can do anything."

The more I trade, the more I start to see trading as being SIMILAR to, not different from medicine. The patient and your collective positions.
- First, do no harm (to your patient or your trading account equity)
- Study the patient's condition. Is your position extremely fit, adequate, unhealthy?
- Listen to what the patient/position is telling you?
- What is the epidemiology (study of health and disease in the population) or market?
- Does the patient have something that creates unusual risk? Extremes of vital signs, etc. for equities, it might be debt, financial condition, etc.

Of course there are differences, too, in the side effects of treatment, with Dr. Bernanke's hyperinflation textbook, and so forth. But I'm liking the analogy better all the time.

Good trading and great risk management to all.

Educational use only. Never intended as investment advice.