Leaving the metaphorical imagery alone for a moment, I just opined to my partners that the emotional tape is making the intraday nuances difficult to game. I still think the shortside wind is at our trading backs, but the journey to profitability won't be a straight line. Until the overbought condition is alleviated and the seed of doubt flowers, we're likely going to tack to lower levels. For those of you who never took sailing in camp, that's kinda means we zig zag our way lower. Or...at least I think that's what it means!
I've been targeting S&P 850, Dow Jones 8000 and NDX 900ish as the "easier" trade and, as such, will probably ask Boo to take his schnitzel if we get there. If (big if) we arrive at those support zones (which is 5+% off yesterday's opening), there will surely be negative data points to support the short side thesis. The media will always assign reason to the rhythmic movements of the market. The hardest aspect of our job is that the news is always the best at trading tops and the worst at trading bottoms. I can certainly still see further downside (please see this morning's first post), but if our goal is to capture the "easy" trade, that's probably it.
Contra hour comes to a close and the chatter on trading wires is centered on Fedex truck that exploded. There was a time that something like this would have cascaded the futures lower but I think the street has become somewhat desensitized. I'm not sure if that's bullish or bearish, but as Jack Skiba used to say, it is what it is young man. The tape is giving it a go on the upside, and the traction in the retailers is worth noting. Weird...with consumer confidence melting in front of holiday season, you'd think they'd be the most affected. That's Minxy with a capital M!
Speaking of the holiday season, Daisy has been hard at work with a surprise for the good readers of this site and she seems quite excited. Maybe that explains why she hasn't been around. In any event, she sends her regards and promises to stop by soon. I've gotta hop and get sniff out this buy program.
Good luck into the bell.
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 firstname.lastname@example.org.
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.
Daily Recap Newsletter