Biorhythms

S&P 500 Future

What exactly is that a picture of? Well it is a bar chart of the S&P 500 future. It is a visual display of the futures price going back to 1999. Okay - that is what those bars tell us, but what do they mean? The futures market represents a never ending struggle between traders who believe the market will go higher from where it currently is and traders who believe it will go lower from where it currently is. In other words, those bars are visual representations of the actions, beliefs and emotions of people.
As these price rhythms are being driven by the emotions of the people involved, it is my belief that the rhythms we see on a price chart can be applied to many aspects of life. I've found my emotional and intellectual state to reflect the price rhythms I see on these trading charts. I'll experience highs one day, only to pullback and feel in the dumps for no reason the next (ever heard the term emotional roller-coaster). Sometimes my mood will consolidate for a couple days as I wait for that next breakout to be propelled to even higher highs!

The point I am trying to make here is that we have to take the highs with the lows. The good with the bad. Everything is in a state of perpetual change and motion, however that motion is not a neat and predictable. There are peaks and valleys, consolidations and breaks. This is important to understand because we find peace when we are in balance with our external environment. When you can accept that there will be highs, and sudden yet temporary pull backs from those highs - and lows that will reverse when you are so stretched that you can't go any lower, you will not need to struggle with the lack of harmony between the internal and the external. The same concept goes for success in the markets. When you can understand and detect the current price rhythms, you can trade in harmony with the markets. It's the old Wall Street adage "Dance while the music's playing".