The Rocky Road
Has anybody seen Hoofy?
Good morning and welcome back to Mt. Olympus. Do you remember the Greek myth Sisyphus? He was that mythological dude who pushed the boulder up the mountain and every time he got to the top it rolled back down? Well, I'm sure Hoofy can relate to his storied past as every rally he's attempted in the past few years has met a similar fate. Will this time be different for our precious bovine or will Boo once again step in, steal his thunder and make off with Aphrodite? The trading gods are about to speak, my friends, so stand up and listen close-the games are about to begin.
The last two sessions were a textbook example of the virtues of patience. As the bear market continues to evolve, it's become evident that the ability not to trade is as important as our trading ability. Often times, boredom breeds risk as we're conditioned to believe that sitting in front of a trading turret necessitates a need for trade. It's that exact thought process that often leads to unnecessary losses and unfortunate situations.
There is a distinct difference between complacency and composure and if we exhibit a moment of weakness, the Minx will exploit it. Make no mistake, our will is being tested even when we're not involved as we're constantly on the clock. The hedge fund hot potato we've witnessed is akin to standing in a circle and trying to shoot a few good trades per day. Sure, you could hit the jackpot-but for every miss, there is surely a casualty.
As I mentioned yesterday, I've got a midtown breakfast meeting and I'll be back in the office in a bit. The early morning chatter is centered on the continued weakness in the U.S Dollar, a further rally in crude and a tanken' Japan. The European bourses are particularly soft and we'll need to keep an eye on the German DAX. It's a scant 50 points from monster support and it'll need to hold if Hoofy's gonna hold up his end of the rock.
I can't the count this year down without sounding redundant, but there are a lot riding on these next two weeks and traders are trigger happy. Our trading metrics (as we know them) will assume less importance as December 31 approaches and emotion will play an increasingly larger role in the prevalent price action. Make smart choices, my friends, and try to find an edge before committing your hard earned capital.
Good luck-and play like a Raider today!
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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