Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

The Ballad of Hoofy the Kid



Have you come here for forgiveness?
Have you come to raise the dead?
Have you come here to play Hoofy?
To the lepers in your head?
Did I ask too much, more than a lot
You gave me nothing, now it's all I got
We're Hoofs, but we're not the same
We hurt each other than we do it again


Well, well, well, look who decided limp into the trading room. It's our ol' pal Hoofs, and he's wearing a sly smile on his face. Funny, you couldn't find hide nor hair of him during the early malaise, but consistent with the FUBAR environment, he's becoming emboldened with each uptick in the tape. Shocker!

One of the primary rules of trading is the notion that you can always appreciate the price action, but you must never defer to it. In other words, the "action" or "eyes" can factor into your trading thesis, but if you bought (or sold) stocks purely because they act well (poorly), what's your justification if the stock (tape) reverses? This is, in a nutshell, why so many momentum traders have had a rough go of it. Setting stops, and rolling them up (down) during the trading day can help protect the day traders among you.

Consistent with the earlier theme, the S's continue to act much better than the N's (Banks!), and the Dow's now managed to poke its nose through triple digit territory. After the week (month, quarter, year....) that we've been through, a little ebb is to be expected against the flow. If (big if) the S&P's can push through this zone, the next areas of resistance are SPX 850 and then the downtrend line at 870. In the NDX, let's call resistance 900ish.

The early afternoon should be interesting, as I'm beginning to see some of those big SPY sellers turn to cover. Still, we are in the midst of preannouncement season and the internals have yet to confirm. I don't mean to bum ya out, Hoofmo, but there's no reason to swing for the fences. Hit for average, stay tight with your discipline and, above all else, remove emotion from the mix. Emotion is the enemy when trading.

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

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.

Featured Videos