SP500 Shooting Star, Rates Markets and Some Inspirational Quotes.

The SP500, produced a small 'Shooting star' candle yesterday. The Shooting star candle is not typically a strong candle signal, however it is worth observing to see if it halts the advance of the SP500. Should the SP500 fail to clear yesterday's levels, then this candle could turn out to be significant, all prior moves lower over the past six months saw similar candlestick set-ups. The chart below shows these, note how these set-ups had managed to stop the previous rally and then preempted a turn to the downside.

Interest rate markets have been relatively active over the past few days, yields in the major G7 countries have backed up a little after some strong swings over the past week, particularly at the front end. Meantime PIGGS yields have actually eased back a touch after some initial strong gains earlier this week. I will cover these in a bit more detail over the weekend.

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In the meantime -  I leave something for the weekend :

This time some inspirational trading/market related quotes (direct and paraphrased) that I have accumulated over the years, and which I periodically refer to, in order to try and keep myself level- headed, balanced and with my feet firmly placed on the ground: - I have listed my favourite 10 below, in no particular order.

• 'Predicting rain does n't count; building arks does' - Warren Buffett's Noah Rule.

• 'Know what you know and know what you don't. And no matter how good you think you are, remember to stay humble. For if you don't, the market will do it for you.' - Attributed to Todd Harrison of Minyanville.

• 'To do well at anything, do not focus on winning,  instead focus on achieving progressively high degrees of excellence. - Winning will be the ultimate result.'. - Paraphrased from 'The Inner Game of Tennis' by W.Timothy Gallwey. 

• 'Prepare for the Battle, not the Victory'. This was inspired by a documentary on the on the 1967 Arab-Israeli 'Six day wars. An Egyptian Army Officer interviewed, stated that - the Israeli Army had prepared and trained for the battle, whilst the Egyptian army, which should have been at least its equal, had prepared for a parade through the streets of Cairo. 

• 'The best way of preparing for the future is to take good care of the present, because we know that, if the present is made up of the past, then the future will be made up of the present. All we need to be responsible for is the present moment. Only the present is within our reach. To care for the present is to care for the future.' - Thich Nhat Hanh, Buddhist Monk.

• 'I can calculate the motions of heavenly bodies but not the madness of people.'- Isaac Newton after losing a fortune in the 1720 South Sea Bubble.

• 'Never let fear of striking out get in your way' - Babe Ruth.

• 'Any time you find yourself hoping in this business, the odds are that you are on the wrong path or that you did something stupid that should be corrected.' - Richard Russell.

• 'Profits always take care of themselves but losses never do.' - Jesse Livermore.

• 'Wall Street never changes. The pockets change, the suckers change, the stocks change, but Wall Street never changes because human nature never changes.' - Jesse Livermore.

Have a great weekend.