A Critter Quickie
May peace be with you!
I'm jugglin' my mug off but wanted to sneak out a quick column for the unbuzzable Minyans among you. As we're working with serious time constraints, please excuse the terse tango. Just the facts, Ma'am.
While Boo is emboldened by the "churny" top, Hoofy is quick to remind him that overbought conditions can be worked off as a function of time or price. We opined last week that "sideways to down" was necessary for a year-end sprint. I don't know if we get the latter, but we've certainly got the former.
The current dynamic allows for a two-sided interpretation as the bears can "lean" against the recent highs and the bulls are using the aforementioned trendlines as a support network. In short, while the flags are tattered, the pennant formations remain in play.
I added two legs into my metaphorical fur this morning near S&P 1180 (50% conviction on the short side). I removed one appendage into the 3:00 hour as crude, breadth and the nutty nets all acted dry. It was a "push" in the conventional sense (no pain but not gain) and consistent with my evolving mindset. There are trades for the day, trades for a thesis and trades for a catalyst. Adapting is entirely alright but rationalization, my friends, is strictly forbidden.
Regardless, I've still got a paltry paw in the metaphorical fur (25% conviction on the short side) and I'm inclined to hop home and take a fresh look at the Hump. My risk (and exposure) is defined and I'm aware that the definition of an investment should never be a trade gone awry. There will surely be a chorus of "can't get 'em down" tomorrow but we'll see what tomorrow brings.
I've gotta run---been one of those days--so fare ye well into the bell and, for the lucky ducks taking a five-day weekend, have a fantastic holiday!
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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