Ripplin' Through the Muck
Between the dawn and the dark of night
And if you go, no one may follow
That path is for your steps alone (The Grateful Dead) OK, Junior Alert! Whenever my trusty sidekick starts getting in one of his "moods," there is typically a sizable trade coming. I'll tell ya, here's a kid who is salt of the Earth---decent hoops player too---but when he gets saucy, the whole World has to stop and take notice. Look at me, look at me, look at me!!! Pah-leeze, kid...I'm entirely too self absorbed to pay attention to your emotional variances! What the heck is a Quinnipiac anyway? Sounds kinky! I can't say I blame the young lad for psychological baggage---this tape would make the steadiest of souls stand on edge. Still, our ability to maintain lucidity in the face of adversity will surely differentiate our performance and serve us in good stead. Our journey will take us through many emotional states...but if you're going to succeed in the trading game, you must check that emotion at the door. Panic decisions always have a way of coming back to bite you in the can. As of this post, the market has held our levels and the tug-o-war that is our "tells" continues to fight it out. As somebody who loves to "fade" (read: buy) despair, I continue to be intrigued by the sirens of Hoofy and the lure of Snapper. That said---if nothing else---I am disciplined and will always attempt to honor thy process. This, of course, doesn't mean we can't zag...it just means that we must factor all inputs into the decision making process and live with our choices. There are two ways to "trade in between" when getting conflicting signals---pare back on your size or set tight "stops" on your exposure. The method you choose is unique to your risk profile and style of trading. The bulls are giving it the 'ol college try as some "black box" type accounts seem to have stepped up on the buy side. The price action off the lows is constructive, but the internals continue to bridle my enthusiasm. Again, doesn't mean you can't play...just means you have to be extra careful. Hope this finds you well. 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 email@example.com.
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