Excerpt from Rambus Wednesday Report

“Since August of this year the SPX has enjoyed a 175 point rally without any pain. If you’ve been trading for any length of time you know that the stock markets like to inflict as much pain as possible to throw you off the main trend. If there wasn’t any pain there couldn’t be a stock market because pain is what drives the markets both up and down. It’s the pain of losing one’s hard earned capital that causes investors to sell at the bottom. Just when you can’t take the pain any longer you sell to relieve the pain. You feel good until the market turns right around and you find yourself in pain again because you are now left out of the move you thought you had right. Even if one is way ahead on their positions there is still some pain when the inevitable corrections takes place and you see some of your hard earned capital slipping away. Unless you can call all the tops and bottoms to the penny you will find yourself in some kind of pain.”