Early Morning Outlook

POSITIONING: Heron stands in the blue estuary, Solitary, white, unmoving for hours. A fish! Quick avian darting; The prey captured.
People always ask how to follow Tao. It is as easy and natural as the heron standing in the water. The bird moves when it must; it does not move when stillness is appropriate.
The secret of its serenity is a type of vigilance, a contemplative state. The heron is not in mere dumbness or sleep. It knows a lucid stillness. It stands unmoving in the flow of the water. It gazes unperturbed and is aware. When Tao brings it something that it needs, it seizes the opportunity without hesitation or deliberation. Then it goes back to its quiescence without disturbing itself or its surroundings. Unless it found the right position in the water’s flow and remained patient, it would not have succeeded.
Actions in life can be reduced to two factors: positioning and timing. If we are not in the right place at the right time, we cannot possibly take advantage of what life has to offer us. Almost anything is appropriate if an action is in accord with the time and the place. But we must be vigilant and prepared. Even if the time and the place are right, we can still miss our chance if we do not notice the moment, if we act inadequately, or if we hamper ourselves with doubts and second thoughts. When life presents an opportunity, we must be ready to seize it without hesitation or inhibition. Position is useless without awareness. If we have both, we make no mistakes.
365 Tao: Daily Meditations
Deng Ming-Dao
As google searches for circuit breakers and trading halts will likely be spiking today, we will remain focused on price and how it reacts around key levels. Remember not to get confused by velocity of move inside range and that price is always telling you what you need to know.
What really matters today in the equity markets is how we will close the day. Should we close above the pivotal bull/bear lines then, we’re still stuck in the chop range. However, should we close below, expect the selling to intensify and potentially get ugly. We will review this and discuss how we expect things to play out in detail in today’s webinar.
As we discussed coming into Q4, this is where things get really interesting as more strategic and experienced traders get really focused. This is the kind of market where veterans have a real chance to deliver and leverage their experience. May it continue until year end/into 2019 and good luck to all.
Yesterday’s blog post along with all summary links, should serve as a good refreshed of where we stand and our base-case scenario outlook.
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Wishing you a great day ahead.

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