The Standard Fare
Aren't we supposed to SELL hope and BUY despair?
The opening bell tolls and freak week has officially begun. The noise was a tad louder than usual as nerves are a bit frayed. Everywhere you look, there's somebody telling you what the market is gonna do, when the market is gonna do it and how to best position yourself for that move. Let me be crystal clear on one point, Minyans--nobody, and I mean NOBODY, knows what the market is going to do. While it's entirely alright to listen to respected opinions, understand that THE decision on how to approach the tape is yours alone to make. You'll reap the rewards if you're right or pay the price if you're wrong--so choose wisely and remain lucid.
I continue to hear bullish chatter regarding the pending clarity and while I may not agree with it, I certainly respect it. Indeed, the opening weakness was bought and the market internals have migrated towards a positive posture. The dollar is weaker (although off it's worst levels), treasuries and gold are holding their bid and the semis are attempting to lead by example. And it's only been a half hour!
One could argue that the first move was the "easier" trade although I didn't fade (read: buy) it with any size. I'm seeing buyers trip over themselves to get long as news hits the tape that the U.S will withdraw it's resolution and it wont go to a U.N vote. Despite the price action, I have a hard time seeing why this is bullish--but that's simply MY humble opinion. The fear of missing is unusually palpable this morning--be careful.
Good luck in the muck!
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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