A naked Toddo...now THAT'S scary!
You're on the road
But you've got no destination
You're in the mud
In the maze of her imagination
Wowzers, Man...it was a typo! It happens! I'm a creature of habit! I've got fat fingers! In the last post, I mistakenly said that I slipped my leg out of the bear costume and, clearly, I meant the bull costume--that's what I had on! The clarification is the easy part. The prognostication...now that's where it gets tricky!
Why was I so quick to shoot my, uh...take my profits? Three reasons. S&P resistance (840ish), NDX resistance (980ish) and BKX resistance (725). I was playing for a cutesy trade and, while the reasons still stand, my chosen strategy dictates that I stick and move. I was lucky enough to stick...I had to be disciplined enough to move.
I'm not saying that we can't trade higher--we're still coiled, the bears are comfy and the wall of worry stands tall. However, this column is predicated on honesty and my gut instinct was to try a fade (read: sale) the other way. I didn't pull the trigger, mind you, but I thought it--and when I have a bullish and bearish thought cross in the middle of my crowded keppe, I know enough to flatten and take a deep breath.
I can't stop staring at the financials as I continue to feel that they're the most important complex in the market. They failed (again) at BKX 725 and if this tape has a squeeze in it, they'll have to overcome that phobia.
In flow land, I saw a buyer of 5 million QQQ and, as that couldn't get 'em through resistance, perhaps that's telling us something. Tread carefully!
Gotta jump and take this call. I'll be back.
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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