Hey Hoofs--pass the Kleenex!
Terrible Tuesday has officially kicked off and the early action has been dominated by sellers--shocker there! What am I doing? Well, I made some disciplined sales on some of my index puts and rotated other short side (defined) risk from S&P type names to some of the "more extended" Nasdaq names.
As you might expect, the morning breadth is atrocious. Losers are swarming winners 3:1 in the Nazz and 2:1 in the old school. Energy, metals and, to a degree, defense stand out as green islands in a sea of red but other than that, it's Southside Johnny.
There will clearly be a point when we want to flip our lids and trade from the long side again but I don't think we're there yet. As such, I'll continue to dance with a leg in my bear costume and will operate with a soft S&P 825 stop. Europe continues to slide, our major tells are pointing south and consumer confidence has fallen off a cliff (64 vs. expectations of 77). Take a deep breath before committing risk (either way)--these are the types of days that can really bite you if you're undisciplined.
On a brighter note, James Goodman of New York has taken the lead in the charity auction with an impressive bid of $9000. Holy Guacamole! Hey Fokker, check a borrow on Toddo! I'm only joking, James, that's awesome! Good luck on your bid!
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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