Bully Proof Your Kids: "Tell me three good things that happened to you today." This helped him make the distinction between events and his feelings about them. Once he had that mastered, they added, "Tell me three good things that happened to someone else
Make Watercolor Paints - baking soda, vinegar, light corn syrup, corn starch, and food coloring. It will be ready to use in a couple of days. (Must dry first.) This might be worthwhile at the rate this kid goes through watercolors.