Rose Colored Glasses
See the thorn twist in your side
I wait for you Sleight of hand and twist of fate
On a bed of nails he makes me wait
And I wait without you (U2) The smartest and sexiest cow on the planet just sashayed by the trading desk, looking a tad glum, and motioned for me to join her in the conference room. I normally wouldn't leave a plate full of hot, crispy french fries unattended (not on this desk), but I'm a sucker for Daisy. Hey....who isn't?!? At first, I thought there might be an utter woman involved, but she assured me everything between her and Hoofy was great. She was, however, concerned about her bullfriend and asked me when I thought he might be back in the game. I explained to her that tradable moves typically occur as either a function of time or as a function of price. In other words, there will be either a price point or a time when the selling pressure is absorbed and the market will find its footing. One of the most important aspects of being a trader is having the discipline to wait for your pitch. If I told you how many horror stories I've heard from my brethren who insist on playing every day, you'd probably fall out of your seat and go boomp. It almost seems like the trading community is standing in a circle shooting one another. It's a natural part of the weeding out process, I suppose, but it's not something you need to be a part of. If I could offer one lesson that I've learned through the years, it's that patience typically brings price. If it doesn't, my friends, know that opportunities are made up easier than losses. I continue to be wary of today's market as a function of these pesky financials, but there's a lot of trading left to do today (both ways). I'm hearing more and more chatter on the pending Brazilian elections, and I think that nervousness might be adding to the malaise. In the world of technical analysis, past support (when violated) becomes future resistance, so we can now watch BKX 670 as a level of contention on the upside. I've always said that I'm not a technician---I'm technically oriented---so I like to know what levels other people watch. Here's a question: do people follow technical analysis because it works...or does technical analysis work because people watch it? Man, that's deep! So, do us a favor Daisy and take care of our 'ol pal Hoofs. If he's holding onto the handlebars too tight, he likely won't be a position to proactively prosper when the time is right. Balance and perspective, dear, will lead to opportunity. Hope you're all having a good day...and don't forget, if you'd like to get pinged when a new trading thought is posted, fire off an email to JournalAlert@Minaynville.com. That'll likely kick in next week...after a weekend of football and time away from the tape. Silver and Black, Baby! R.P 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 firstname.lastname@example.org.
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