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Shell Shocked!

By

That's good disicpline, kid!

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Leaves are falling all around,
It's time I was on my way.
Thanks to you, I'm much obliged
For such a pleasant stay.


(Led Zeppelin)

Hans and Franz (Blix) are all over the tape talking about the warheads they found in Baghdad and, bingo, the market shed some weight. Let's see now...this morning, there was chatter that Saddam was moving to Del Boca Vista (exile) and the Minx popped (only to fail). Now, there's Iraqi noise the other way and the Minx dropped...but is it that easy?

I'm not smart enough to tell you how perception will shape today's reality but remember, cookie, there's a truckload of information due after the close. If you're pressing and guessing based on the last news item, take a step back and a deep breath. The goal is to identify a proactive trading strategy, remove emotion and use price to your advantage. I know you've heard it before--but are you listening?

The semis are weighing on the collective psychology and, while I continue to be irked by the massive dandruff, a savvy reader pointed out the following. Look at the SOX chart since the summer--a bullish case "could" be made that this entire pattern is a reverse head and shoulders! I don't think it is, my friends, but it just goes to show you that beauty is in the eye of the beholder.

While I continue to harbor concerns about this market (my sell signals have only just begun), my inclination is to slip a leg out of my metaphorical bear costume (leaves 25%). It's a baby step, I know, but I hopped into this posture during the Dubya stimulus fade and, well...baby steps add up (and you're less likely to trip!). My goal is to hit for average--not power--and, in front of the gorillas in our midst, it's the disciplined thing to do.

I hope this finds you well.

No positions in stocks mentioned.

Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at todd@minyanville.com.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

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