Holy schvitz, this price action is nuts! If I field one more frantic phone call from my trading brethren, I'm gonna start charging by the hour! I mean, if professionals are this spun around, the retail investor must be pulling their hair out by now. Talk about volatility! Junior just told me he's thinking of quitting finance and opening up a wig business. Somebody get Maury on the phone!
I'm going to be abandoning my post at the bell as I have a date with the dentist. Jeez, I never thought I'd see the day when I was actually looking forward to getting my teeth drilled! In all seriousness, it's not that bad...the discipline of listening to our tells and approaching the action "N's over S's" served us in good stead today. Also, the horrendous action in the internals flashed red all day and, if nothing else, that begged being extra tight if playing from the long side.
On a constructive note (yes, there is one), I saw size buyers of index puts today and that's typically a bullish signal. When somebody walks into the QQQ pit and takes down 100,000 QQQ October 20 puts while another trader scoops 20,000 Dow Jones November 74 puts, we're usually "near" a tradable bottom. My stochastics are also starting to give me that itch---and while they've never been good "timers," I've found them to be pretty reliable. Finally, sentiment is abundantly negative and the bears are getting pretty brazen (for good reason). I'm not sure if we need that "whoosh" resolution or not, but my antennas are certainly piqued on the long side.
All that said, it's important to remember that opportunities are made up easier than losses---so if you're unsure or unsettled, erring to the side of caution remains a smart idea. I also want to thank the readership for the phenomenal response that we've had to date. I'll remind you that this is a temporary home and our official launch is scheduled for December 3rd. I've recently seen the new digs and, let me tell you, it's pure insanity! If you've found this site to be educational or helpful, we (humbly) ask you to help us in spreading the word.
I will leave you with a pearl of wisdom I picked up during my annual trek to Arizona for a spiritual refocusing. The average mind thinks 60,000 thoughts per day and, of those, 40,000 are recurring. If you factor in all the time you spend planning for the future...how much time are spending appreciating the here and now? As my grandfather used to tell me, time is the most precious of commodities. Don't waste your night stressing about today or freaking about tomorrow. It will be here soon enough.
Have a peaceful night.
Long QQQ calls, Long DIA calls
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.
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