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Random Thoughts: Operation Long Side

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Using price to your advantage.

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Editor's Note: The following was posted in real time on our premium Buzz & Banter. It's being shared here for the benefit of the Minyanville community. See also Sixteen Candles.


Gate Sniffage! - 9:49 am

What is this, Bizarro World? The Raiders actually WIN (despite a Herculean effort to blow it in the waning seconds) and the screens are green. Go figure--or go to work, depending on your mindset. I'm doing both, with the following vibes top of the morning:

  • As Minyans know, I began operating from the long side a few weeks ago into the heat of the meat. It wasn't easy--and it still isn't--but I continue to trade around my exposure as a function of time and price.

  • In that vein, I made "enough sales so I could sleep" into last week's rally--selling the exposure I bought on dips into the rips--and I'm paring further risk into this morning's glory.

  • Just trading, Minyans, and doing so with great humility and defined risk. The greatest wisdom is knowing that you know very little.

  • With regards to my bovine posture in the energy space, I'll again reiterate that it's a "counter-trend" trade, which begs lightening into strength. While my sense is that crude could trade back to $90 with relatively little effort, I'll be feeding the ducks into it.

  • Sixteen more days until the election and--as discussed this morning--the risk of something profoundly world-altering has perhaps never been more acute. I, for one, will breathe a lot easier after the election passes and we can begin the process of "humble mea culpas."

  • Lemme get this out there in a timely fashion. Good luck this week, Mon Frere, and be a Minyan. No matter what happens, they can't take that away from you.



My name is Darryl, but you can call me D, HIT IT RUN! - 10:47 am

  • You think it's tricky to rock a rhyme that's right on time? Try rocking this market (while rocking a rhyme, if you're feeling saucy!).

  • Notable eyes of world? The pink piggies (BKX is a standout red head), the dollar is higher (not equity positive) and big beta is punky brewster (Google (GOOG), Research in Motion (RIMM) and Apple (AAPL) are lower).

  • What have I done? Sold much of my "upside try" (just trading as the OSX +16% off Thursday's low) and nibbled on some smallish SPY puts for a defined risk try and a trailing stop (initially set above today's range as they were bought with the S's up 27 handles).

  • The net/net is that, after sweating out a probey "low" (I know, remains to be seen), I'm back to pounding my glove as I "hit it to quit it," both ways with defined risk and steadfast discipline.

  • The biggest upside risk? Performance anxiety in the mutual fund space (after MUCH has been purged).

  • The biggest downside risk? Perhaps something unforeseen into the election and, of course, the lubrication (or lack thereof) in the credit markets.

  • I'll tell ya, there's nothing like old school Run-DMC. They were truly visionary and tremendously cool, as evidenced by how they stepped up when I was honored by UCP.

  • Almost 250,000 kids in Minyanland. Who said you can't dare to dream?

  • I'll be back, Yo--I hope this finds you with a smile on your puss and some jingle in your jeans.


R.P.

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