The Mind, Sisyphus and the Primary Trend

• Posted by Greg Harmon
• on July 17th, 2015

According to Greek mythology, Sisyphus the King of Corinth, was punished by the Gods for chronic deceitfulness by being compelled to push a boulder up a hill only to watch it roll down and repeat this forever. The image and the story have a lot of applications to the trading world.

Let’s start by thinking about what it is you saw when you looked at the picture. Did you see a man pushing a boulder up a hill or a man trying to keep a boulder from falling down the hill? Your answer tells a lot. The boulder is not at the bottom so it has either been pushed up already or it started at some level and was pushed up but is being supported. Are you looking higher or lower?

Now how do you see the Primary Trend in the market? Is it higher or do you see the S&P 500 ready to rollover and fall back? I would venture that if you saw the boulder pressing on the man and ready to fall back that you see the S&P 500 chart as ready to roll over. And if you see a man just continuing to roll the boulder higher that you see the S&P 500 pausing in the Primary Trend before resuming higher.

What is the difference? In trading the difference is whether you are putting your money with the Primary Trend or fighting that trend. If you are trading with the trend then have likely been pretty happy for the last 6 years. If you have been fighting the trend, always looking for a reversal, then you are likely frustrated.

There are things you can do about it though. Take five minutes everyday before you look at a chart to prep your brain to be ready for the primary trend. In this uptrend that means smile. Look up. Fill your cup of coffee or juice well above the mid point and not how it is better than half-filled. These may sound like stupid things but your reptilian brain will cue off of them . If you doubt me then read take is straight from the Nobel laureate Daniel Kahneman and read his book Thinking Fast and Slow.

After you do these things then look again at the monthly chart of what you are interesting in buying or selling. Is it aligned with the trend or has it proved through a material reversal to be moving counter trend. Do not act unless it is moving with the trend and be happy.

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