Lately the IT amounts have been linked to the higher costs of oil/energy so not surpising traders would look at the Crude chart and say 'Oh! March was the period energies were peaking therefore . . . '.
Quote from a friend:
"I can heartily recommend Lars Tvede's book on the psychology behind financial markets. Whenever we're invested in something (with money, pride, intellectually etc.), we start thinking with our feelings. When reality starts proving us wrong, we get a discrepancy between reality and our emotional stance which leads to cognitive dissonance. At this point, we stop looking at evidence pointing to the opposite of what we want to see (selection bias). Then we start projecting our beliefs onto news, charts, systems etc. (perception bias). Finally, when reality can be denied no more, we take the hit and start telling ourselves that we knew it all along and that we'll never make this mistake again (hindsight bias a.k.a. Monday morning quarterbacking). We cannot escape these faults since they lie at the core of being human, but we can become more aware of them. I think trading is one long struggle with our own cognitive apparatus — which is trying to ruin us."
And:
http://www.moneytec.com/forums/_show..._threadid-8080