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Fades R' Us

By

Dizzy Miss Lizzy!

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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


(Neil Young)

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.

position in spy

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 todd@minyanville.com.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

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