Come with me Hoofy--I'll take your mind off the tape!
We came in spastic like tameless horses
We left in plastic like numbered corpses
And we learned fast to travel light
Our arms were heavy but our bellies were tight
Well, my friends, another fantastically brutal session is in the books and after a massive battle, Boo's bandit's ran away with the ball--and the profits! The Dow Jones Industrial Average is now flirting with double digit losses and the S&P, after breaking February's low, is within spittin' distance of the October abyss. It's enough to drive a Minyan mad, I'll tell ya, but that would be an emotional reaction--and emotional trading isn't allowed in Minyanville.
I'll shiver through the overnight session without significant exposure and while I'm sure Boo's pissed, I'm not gonna abuse myself for adhering to a plan of attack. The goal, when trading, is to map out a strategy, use prices to our advantage and maintain our discipline at all costs. If I planned to fade rallies and build short side exposure and THEN strayed from that agenda, I'd have to put corks on the forks. I didn't, therefore Ruprecht and I are safe for a night. Tell Lady Fanny of Omaha!
There aren't many positives to point to these days--the fundies suck, the technicals are scary, the structural is uncertain and the psychology continues to harbor hope. While it's true that the news is always the worst at the bottom, there is risk in discounting whether we're currently there. I continue to feel that the October lows need to be dust in the wind (dude) before we can garner some sustainable jig but, as you know, I'm not heavily betting in that direction. Rather, I'm in squirrel mode and looking to build my acorn collection.
Alas, it's time to turn it off and tune it out so if you're obsessing about stocks, STOP IT! Balance will not only improve your quality of life, it'll offer perspective which, in turn, will lead to a more lucid thought process. We work to live--we don't live to work--and sometimes it's easy to lose sight of that small fact. In that vein, and on behalf of the critters, I bid you adieu.
Have a peaceful night.
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 email@example.com.
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