The Big Chill
How are you supposed to trade in this muck?!?!
My fellow Minyans, I pride myself on my ethical standing and, as such, I strive to keep innuendo and rumors out of the Minyanville community. However, I felt compelled to share the trading chatter of the explosion before I "saw" it because the initial two handle dip in the Spooz coincided with this story getting "loud" in trading circles.
I'm in no position to comment on the nature of the explosion but, while it's likely an accident, it brought chills to my spine. As I watch black smoke rise from downtown Manhattan, I can't help but recall the last time I saw these types of images. It's sort of like bruising an old wound--it's not as bad as the first injury but you'll never forget it's there. Prayers to the souls involved and to those fighting this blaze.
Turning our attention back to the market, my buddy Rick just asked me if breaking a level on a perceived terrorist attack "counts" as a breach. I told him that these types of situations aren't covered in Technicals 101 and I didn't know the answer. I DO know that when we melted quickly, I made partial sales on my March paper puts. I didn't have the gumption (or desire) to get long but I wanted to take advantage of the emotional spike (on both a directional and volatility basis).
I'm still leaning short and, as such, I'm comfortable leaving my leg in that goofy bear costume. The tea leaves are a bit mixed--the dollar and gold are flat, the Nazz breadth is slipping, the brokers and semis are heavy, the banks and retailers are firm and Europe is now mixed. I still wanna fade rallies but I'm not pressing--so you know. I'm sure some people did and, if this is ruled an accident, they'll likely have to cover soon.
May peace be with you.
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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