The Trunk Skunk
May peace be with you!
In the howling wind
Comes a stinging rain
See them driving nails
Into the souls on the tree of pain
The afternoon rain is causing some pain for the critters who drank the acne champagne. The stain started early this morning in the semi space, was championed by the bond bears, migrated over to Citigroup (C:NYSE), got punched in the nose by General Motors (GM:NYSE) and finally puked it up from the inside out (internals). The zillion dollar question now becomes whether the active traders will hold their incremental expososure or head for the hills into the bell.
It's been a frustrating quarter and I suppose that it's only natural that it would have an anxious end. With everyone trading with tightened grips, emotion is clearly playing a central role in the whippy price action. I've always found that trying to squeeze water from the performance stone causes more pain than pleasure but there are a LOT of newbie hedge funds who will have to learn that lesson firsthand. My hope is that ye faithful have garnered some wisdom through the years and will avoid that tutorial altogether.
I don't know if it's a coincidence that Brazil, commodities, equities and bonds all got whacked in synch but it certainly raises an eyebrow. Professor Reynolds has spoken at length about Carrie's bi-polar condition and her mood may very well set the global tone. In the meantime, I'm entirely alright with trading particularly tight and trying to make some hay when our ducks quack. Sexy? Nope. Smart? Probably.
It's been nutty for the last few weeks as I try to set the world record for consecutive meetings. Apologies if the commentary has lagged a bit but it's in the interest of building our brand and establishing the integrity of our content. I think you'll see dividends in the months ahead as additional professors slowly migrate onto these very pages.
Thanks kindly for understanding and good luck into the bell.
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