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.
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