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Back to school


I was hysterically laughing a few minutes ago (as you know by now - I have issues) because I got off the phone with my wife and all I could think about was that Staples Inc., commercial where the Mom (or was it Dad) is floating down the isle of a Staples store with "it's the most wonderful time of the year" playing in the background. Any parent knows exactly what I am talking about. The kids going back to school after summer break is the only thing that can be better than the kids going back to school after a present and sugar filled Christmas Vacation. All right Patty --- enough with the brownies!

The funnier part was that my mind went back to the tape right after I stopped laughing because it reminded me of today's rally. Sure, Patty is very happy the kids are going back to school so she can have some peace and quiet with no one yapping at her, but once back into the swing of things, the reality of homework, basketball practice (yes I am a coach cause they are still shorter than I), fights with friends, teacher conferences, birthday parties, dealing with other parents ... yada yada yada.

In other words, the thought of the kids going back to school is great - but after a while and once reality sets in, you look forward to the next vacation or summer break. Isn't it odd how all these analogies work. There is nothing original here. The psychology of the markets works the same as the rest of life because it deals with human emotions.

The perception trade in this analogy is the anticipation of how good it will feel to have a little free time because the kids are in school. The twilight zone trade is that you are grateful once they are in school but soon begin to realize that you don't get to go home to take a nap - but at least you don't have anyone yapping at you. The reality trade is that you get sick and tired of the school year grind and wish you could spend some alone time with your kids.

Have a great night and I should have some interesting charts for you tomorrow morning first thing!
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