Fades R' Us
Dizzy Miss Lizzy!
My my, hey hey
Rock and roll is here to stay
It's better to burn out than to fade away
My my, hey hey
My goodness--this is NOT for the feint of heart! I'm not sure I've ever seen quicker fades each way in my trading career. The melty opening gave way to Snappage of the first degree...only to get stuffed (thus far) by the bears. I'll tell ya--I've got lightening quick execution and fast fingers and, even still, it's uber-thin, whippy and difficult to get fills. This is your friendly Minyanville reminder to PUT LIMITS ON YOUR ORDERS--the last thing we want is unpleasant surprised from our broker.
So--I faded the opening (bought), faded the spike (sold), got squeezed (for a nanosecond) and, when the Minx pulled back, I took some exposure off. I just told Randy at Smith Barney that I'm getting too old for ths! I sure picked the wrong month for that silly wagon!
We've schnitzeled a bit, taken money off the preverbal table and I want to be very careful NOT to overtrade. That's not to say there aren't opportunities--but when the environment is as emotionally charged as it is, it pays to be patient. Don't ever attempt to make up for lost ground when trading--it'll likely exacerbate the problem.
The bullish elements of the action include the traction in the financials and the ability of the S&P and BKX to snap back to our pennant levels. The breadth, meanwhile, has yet to confirm the upside and, while it's early, that's worth a mention. Also, please remember that traders will likely manicure in front of the weekend (both ways) and, as such, there will be an element of psychology involved in the afternoon action.
Meanwhile, Dow Jones is reporting that U.S officials are disputing that Bin Laden's sons have been captured. Does anybody else feel like a tetherball? I agree with my friend who just told me he's got a perfect solution to the mess. Send Anna Nicole over there--if anybody's gonna locate a flailing rich man, it's her! Oh relax--it's just some innocent humor to break the tension. In this business, a little levity goes a long way. No offense Anna!
I gotta hop and listen to the Franz--I hope you're hangin' in there.
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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