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Flight School


Desperado, why don't you come to your senses?
You been out ridin' fences for so long now
Oh, you're a hard one-I know that you got your reasons
These things that are pleasin' you can hurt you somehow

(The Eagles)

Man, the price action this week has been insane! Love 'em Tuesday, hate 'em Wednesday, Love 'em (so far) it any wonder that traders are so spun around? I mean, the market's gapped open in different directions each of the last three days. That's nuttier than Austin Power's coffee!

The weakness in the fixed income market continues to be a hot topic of conversation and the bond meltage is keeping a bid to the equities. You want correlation? Since last Thursday, the yield on the 10 year has jumped from 3.55% to 4.15% while the S&P rallied 13%. That's a lot of movement for five sessions. Wait...did I really just say five sessions? Those must be dog sessions!

Once again, after our opening gap, the market has sat in a relatively tight range. That doesn't mean there's nothing to do, mind you, it just means that you've had to be positioned correctly coming into the trading day to catch the meat of the move. It's surely a frustrating market-whether you're losing or not making more-but the Minx has the staying power and she's testing your discipline. Remember, the mechanics of the swing are as important as the on base percentage. Consistency, baby, will differentiate you.

We're using our time to ready ourselves for tonight's onslaught while trying to identify potential situations where price has provided opportunity. When push comes to shove, the litmus test for your positions should be: will I buy my longs lower or will I build my shorts higher? If the answer to either of these questions is "no," you've got some decisions to make into the closing bell.

One of the ironies of my situation is that during the times I have something to say, I typically have something to do. I suppose that's intuitive when you're juggling hats between trading and writing-but please know that I genuinely care for the good readers of this site and will always put my best foot forward. I have found that penning my thoughts helps me to synthesize and digest the crosscurrents. Hopefully, you've been able to derive value from this process and make more informed decisions for yourself. We're a small site-but with your help, we can further our mission of financial education and make a name for these critters.

Good luck into the close.

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.

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