Let's go banks!
Afraid of my own shadow in the face of grace
Heart full of darkness, spotlight on my face
There's love all around me, but I was looking for revenge
Thank God it never found me, would have been the end
(Stevie Ray Vaughn)
The Minx springs to life and expiration Friday has officially begun. As you might have expected, the sell pressure was severe out of the gate but, heck...that was the easy move! Now, as the bulls circle the wagons and bears start to get loud, the games will begin in earnest.
For purposes of my metaphorical imagery, the question, once again, is one of timing. I've got some pretty serious concerns regarding this market but, as you know, my strategy this year is to pick my spots and trade tactically. I slipped into the fur around NDX 1100 (S&P 930) and, as such, it's turned into a decent (not tremendous) schnitzel. Now, the goal is to let the winners run (as much as possible) while not letting a good trade turn bad.
In that vein, I'm going to place a "soft" stop on my costume at NDX 1050 and, if we get further slippage, I'll roll it down. By "soft" stop, I mean that I'm focusing on that level but not necessarily committed to it. If/when it triggers, I have the option (but not the obligation) to exercise my cover. Why? I want to see how the tape is trading at the time and assimilate the trading metrics.
The banks open dry and that's their the bogie today. If they begin to sour, we could have a mess on our hands...but that's putting the cart before the horse. Let's take it one step at a time and, please....take a deep breath. Emotional decisions are bad decisions.
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 email@example.com.
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