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Se7enth Heaven

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Detective William Somerset and Detective David Mills swung by to remind us that the se7en deadly sins of trading are gluttony, greed, sloth, envy, wrath, pride and lust. Good morning fellas and thanks for stopping by our humble little town. From the look on your faces, it's clear that you think Boo is guilty of some of these sins as he continues to trade around a short bias. Before you convict our furry friend, however, perhaps an investigation is in order to see what his motivation is.

After the slippage we've witnessed the last three sessions, this upside attempt was intuitive as Hoofy was bound to make a stand. As we discussed this morning, there were (are) potentially a few ways to approach that action. We could have flipped around to the buyside and traded the lift (granular) or we could have covered a bunch of shorts into yesterday's decline (we did) and use this strength as an opportunity to reestablish some short side exposure. How you approach the tape is completely subjective and a function of your risk profile and time horizon. The only right answer, naturally, is the one that makes you money.

Heading into our lunchtime Sushi print, the tone of the tape remains constructive with the financials and semi's setting the tone. That said, the recent seeds have understandably shaken the conviction of the bulls while emboldening the bears. Yes, this can be viewed as bullish-but with several technical levels recently being breached, my inclination is to stick with Boo and lean against S&P 900 (past support, current resistance).

Add General Electric to your list of tells as it's been heavy all day. The stock is red in the face of a spirited rally and that typically means there's supply around. As this is one of the few issues that can shift psychology, it warrants a mention.

Other than that, I'm attempting to view prices as an opportunity (rather than a hindrance) while keeping those deadly sins out of my process. Choose your risk wisely, my friends, there are a lot of crazy traders out there. The goal is to use their emotion to your advantage.

Good luck.
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