Do you want to know why the market is selling? It’s really very simple.
Too many people thought they could predict with certainty it would
continue going up. This isn’t rocket science.
How many of these programmers we’ve discussed anticipated the market going down?
Do you
remember 1999 and all of the day trading rooms?
Do you remember
reasonable people who had careers in many different walks of life quit
their jobs to become traders in these rooms?
How do you think it worked
out for them?
By 2001 most of those trading rooms were gone. Most of the
people who believe they can predict (or whatever you want to call it)
the next move within 24 hours probably won’t be in this business anymore
in a couple of years.
Folks, we’ve seen this script before. Prechter
says each new cycle isn’t exactly like the prior but the concept is the
same. He’s exactly right.
We don’t have day trading rooms anymore. We have people who put all their trust, a counterfeit trust in computers.
