Trading the Presidential Election Results
One step at a time as we together find our way.
Editor's Note: Todd posts his vibes in real time each day on our Buzz & Banter.
Late yesterday afternoon, I did something that I rarely do: I juggled cats. No, no -- that was last Tuesday, sorry! There's a lot going on these days -- sorry for the confusion; wait, I got it....
I shared a midday vibe from the Buzz & Banter on MV Proper because I felt it was an important column for those looking to snatch acorns along the path of maximum frustration. Positioning into the Presidential Election, posted at 2:00 p.m. EST, chewed through the positive and negative dynamics in the marketplace and arrived at the following conclusion:
"How much conviction do I have? Enough to share (all a man has is his name and his word) but not enough to slap bank on the table.
"With a Nor'easter on the way and a powerless house in the burbs, my focus needs to be on my family and my business -- in that order -- with my P&L a distant third."
This view was in part predicated on the following rationale, which was shared in real-time on yesterday's Buzz & Banter:
To be clear, this isn't a back-pat or a victory lap -- we don't roll that way in the 'Ville, and as shared above, I didn't make a downside bet despite my bearish inclinations. The Minyanville Mission has always been to effect positive change through financial understanding, from the ABCs to the 401(k)s, and doing so through a vicarious learning process has been recognized as a legitimate educational experience.
But enough about that -- the key to longevity in this business is not to look (down and) back, but to look out (and up).
Per yesterday's second column, there were dueling technical patterns in play -- the S&P (INDEXSP:.INX) was churning under resistance (S&P 1400 is the first support, and S&P 1380 is the BIG support), while the NDX (INDEXNASDAQ:NDX) was clinging to the 200-day like by daughter Ruby clings to her Ducky.
And, given that Apple (NASDAQ:AAPL) is the Most Important Stock in the World, the inability of the world's most loved stock to recapture it's 200-day provided a stealth tell.
Finally, and only because we've been talking about this for about a month, we should note that marijuana legalization passed in Colorado and Washington. I can't discuss specific names because they're too thin (perception is reality) but this furthers my belief that cannabis plays could provide the best risk-reward of any industry in the next decade.
Why? Four reasons: Increased tax revenue, lower crime rate, it adds jobs, and nobody on Wall Street covers these names. This isn't a trade, it's a long-term thesis, and the first such vibe I am comfy putting my name to in quite some time.
Lemme get this to you, more to come; please understand that with the nor'easter bearing down, and my family and home still without energy or heat, I gotta boogie back to the burbs midday before the Long Island Railroad shuts down, as is being rumored in the sticks.
Good luck today, and remember that profitability begins within!
Follow Todd and over 30 professional traders as they share their ideas in real-time with a FREE 14 day trial to Buzz & Banter.
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.
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.