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.
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