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Flight School

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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) Thursday...is 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.
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