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Fire Sale!

By

Have a peaceful night!

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Hoofy has pushed through the looking glass (S&P 1015) and the bears have run for cover. The initial pop you saw (on the heels of the breach) was the widespread "buy stops" set by active traders. Now, as the reality show evolves, traders are dumpin' puts like the plague. 15,000 QQQ puts here, 10,000 DIA puts there...put soot!

Ignoring this signal is dangerous, if for no other reason than everyone will be discussing it tomorrow. At the same time, deferring to breakouts (and punting protection) has obvious risk as well. We sensed that this acne needed to take place--there was too much grease in the wheel--now the stakes are raised on both sides of the fence.

The chase is on...and when this occurs, it's difficult to ascertain where it "works" to. In a perfect world, it should follow through tomorrow (as every technician climbs aboard). Throwing caution to the wind, however, please remember that two-sided risks remain as you construct your overnight risk profile. If it were that easy, it would be called 'winning,' not 'trading."

Gotta juggle and tickle....fare ye well into the close.
position in spx

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.

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