Nov 3rd 2014 – New All-Time High for S&P 500

By John Bannan | November 3, 2014

Don't Think

The picture above is a strip of paper that is actually taped to the top of my monitor, the key being DON’T THINK, DON’T THINK, DON’T THINK!

I can tell you I am eager to take my winners off the table right now.  I would not be human if I wasn’t ‘THINKING’ this.  But it is even more important to wait for the signals from the system before I can grab the loot from my winning trades.

For if I am wrong and I exit too early, I get to beat myself up.  However, if this is the top, and a retracement comes, it’s not my fault, it’s just what the system requires to exit.  Either way, from an emotional point of view it is better to let the system decide my fate.  The system wins, so let it.

Essentially it doesn’t matter how big your profits are, they can still get bigger.  I am sure there are a few people that follow me that have already taken some, if not all profits of the table from our entries at the bottom on Oct 16th.  But what if it keeps going?  For me, I have to be the model of integrity, I have to stand for the system and not second guess it.

But more importantly you can never be wrong if you just follow the system, because following the system is the smart thing to do.

Market News:

U.S. stocks mostly declined on Monday, with Chevron and Exxon Mobil among the blue chips hit as the price of crude fell to a more than two-year low.

Of the 366 companies in the S&P 500 that have reported earnings for the third quarter, just over 75 percent have beaten expectations, while 58 percent have posted revenue that topped estimates, according to data compiled by Thomson Reuters.

Monday’s economic reports had the Institute for Supply Management’s gauge of manufacturing rising to 59 in October, matching August as the best reading since March 2011.

Tuesday

Mid-term elections

 

Earnings: Albibaba, Archer Daniels Midland, Burger King, Discovery Communications, Michael Kors, Estee Lauder, Intercontinental Exchange, Transcanada, Valero Energy, FireEye, Activision Blizzard, Regeneron, Motorola Solutions, Talisman Energy, Time Inc, Red Robin Gourmet Burger, Priceline, Dish Networks

8:30 a.m.: International trade

10:00 a.m.: Factory orders

News Sources:  CNN Money & CNBC