Randoms: Hiking Over the Hump
Trading our way through the Wednesday fray.
Editor's Note: The following was posted in real time on our premium Buzz & Banter (click for a free trial). It's being shared here for the benefit of the Minyanville community. See also What's Your Price Target? and Trading in the Big Leagues.
Mo' Money Mo' Money Mo' Money! - 10:03 am
I may be swinging at a pitch outside my zone again, but the mechanics of the swing... oh wait, I wrote that column already!
Either way and anyway, as the banks retested the right shoulder of the reverse dandruff near BKX 32.50, I took a stab at some FAS (day trading crack). Entry price was $7.50ish and I'm gonna slap a trailing sop on that puppy. It's likely a day trade (I'm flying blind tomorrow) but sharing my process with hopes it adds to yours.
The Mess Around! - 11:13 am
- File this under "better lucky than smart" but having caught a quick fitty cents on the FAS, I am gonna slap a fitty cent trailing stop on my position, effectively limiting my risk to my entry point (flat trade) and allowing for further upside if the piggy pokes higher.
- Hey, guess what acts well today? Consumer non-durables. Talk about "know thyself," if I counted to 1000 backwards by primes before executing some of my trades, I would find that table where so much money was left.
- Obama is a Deadhead? Dude, that's awesome.
- Societal acrimony? What societal acrimony?
- You know what trades fabu? The homies, homie. We've spoken about the double bottom (HGX 55) but I would also like to note reverse dandruff in that neighborhood. If the HGX pokes through 85 (currently 83.5), there could be no more tears for a while (remember, that was the first sector to fail).
- Lots going on in the hallowed halls on the heels of my 6:15 am spin class, no less (yeah, I'm that guy). We've got some internal melds in front of a "thing" this evening so I'm gonna be intermittently absent from the Buzz. My risk is defined, my head is clear and my thoughts positive. dontHey, that smells and tastes a little like "balance."
- As always, I hope this finds you groovin', man.
Blue, 24... Blue, 24... - 12:05 pm
Minyan KT just asked what I thought of his thesis that we could see further lift to S&P 950-970 into mid-May before a drop back towards S&P 550-560. I told him that syncs with the various scenarios rattling around my crowded keppe, some of which were discussed this morning.
Raiders-Giants on October 11th at the Meadowlands. Berko's initial response was "men vs. boys" and that might be right. Still, I'll be there representing the Nation, wearing my Silver and Black #32 game jersey. Bad seasons define good fans just as bad times define good friends.
I widened my stop on the FAS by a smidge to give the piggies a little wiggle room. That's not a departure from discipline, it's simply an audible in the same game plan.
Keep Jeff Saut's buying stampede time horizon in mind please (I am).
Hey, whataya know, a meeting. Lemme jump and juggle, Minyans, and please know that come what May, I anticipate much of this load moving off my plate. That's a good thing, although I'm quite confident other "to do's" will emerge to take their place (or, at least that's the hope!).
As always, I hope this finds you well.
Lucy Goosey! - 1:49 pm
The White House announced that the stress tests results will be released in May in a "coordinated" method. Interesting they're waiting until after the "better than expected" results filter through... and I would venture to guess we'll see a lot more equity issuance before those results splash across the tape.
Audibles are alright! A slight twist with regard to the stylistic approach of trailing stops is to make a partial sale and reduce the inventory remaining with that stop in place. Trading is more of an art than a science so there is no "right" answer, only the one that works best for you while staying true to an underlying discipline.
And yes, I did so myself, selling 25% of my FAS into this rip, leaving the balance with the aforementioned trailing stop. Winky Wright would be proud.
Finally, a hearty Critter Congratulations to Minyanland on registering it's 400,000th child today. Earning, spending, saving and giving has never been so much fun!
A dream is only as powerful as those who believe in it so for that, I'll simply say thank you, for a real good time.
In memory of our fallen friend and trusted colleague, Bennet Sedacca, 100% of the donations made to the RP Foundation through April will be channeled to philanthropic endeavors consistent with the RP mission, working closely with the Sedacca clan in the distribution of those funds. We thank you kindly for your support as we strive to effect positive change in the lives of children.
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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