Truckin' -- got my chips cashed in
Keep Truckin' -- like the doodah man
Together-more or less in line
Just keep Truckin' on
I've gotta tell ya, this Boo is one nutty bear. When I undressed this morning, the freak brought over a glass of warm milk and asked me if I wanted a blankee. A blankee! DUDE! You need to seriously chill and take a deep breath. These are tough markets and the last thing you should be upset about it booking a (small) profit. Think about it, please, and don't cloud your judgment with negative energy.
The action (thus far) has been a one-way street. The dollar is getting hosed, crude is higher, the breadth is stanky (4:1 negative), the financials are lethargic, the Red SOX have opened their season with a loss and I'm seeing real money selling coming out of Europe. It's nastola for sure. But please, Minyans, remember that we're only been trading for a little more than an hour and there's plenty of time left in this session (read: quarter).
What have I done? As you know, I "took" the May puts into the opening meltage and I'm trading with some tight stops (which defines my risk). I see the carnage, but I've actually tried some longs for a PURE TRADE when the market pooped out. My big picture predication continues to warrant caution but that doesn't mean I must always trade short. Boo made back 50 handles in the spoos and I told him it's time to stick and move for a bit. I don't trust the long side but I'm willing (at times) to rent exposure if I sense a try higher. A short-term oversold reading that tests support (NDX 1020) the first time is such a try.
The risk, as you know, is that the bull camp is extremely crowded after the much discussed performance anxiety sucked fresh money into the market. It's hard to tell how those managers will react--particularly with their report card due--and that remains the wild card as we wade our way through today's session.
I've gotta hop, my friends. I hope this finds you well.
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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