Where's the love, Toddo?
We came in spastic, like tameless horses
We left in plastic, as number corpses
And we learned fast, to travel light
Our arms were heavy but our bellies were tight
It's decision making time in the city of critters as we limp towards the closing bell. The S&P,BKX and SOX are in the process of making fresh breaks (S&P through 850, BKX at 825, SOX through 280). The question, my friends, is how to approach these breaks? As you know, I've always been more of a fader than a presser (I like to sell hope and buy despair). There's surely some technicians out there who are initiating shorts right here (on the breaks) but that's not my game...not when we're this oversold.
I'm going to (humbly) remove my leg from my metaphorical bear costume and go home naked. There's a very real chance that we've got a fair amount of room (on the downside) but, at a point, I'm gonna look to turn my hat around and trade from the long side. I'm not there yet, mind you, but if the Shim Sham plays out, we've got some further pain before a sharp rally. I want to be in a position to leg into exposure for that lift.
Either way, I'll come in tomorrow and take a fresh, clean look. I've got drinks with the big dog tonight (that's MISTER Puglisi to you) and I want to focus my attention on the conversation and the Grey Goose apple martinis...not on my overnight risk.
I'm gonna hop such that I can get this post out to you before the bell. I can't tell you what to do, fellow Minyans, but I can say that if you're unsure, do a little less and err to the side of preserving capital. For, if nothing else, this too, shall pass.
Have a peaceful night.
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