The essence of trading is having a plan. The good thing about a plan is you have a theory about how price will move. This theory is based upon a story you build. My story centers around the ongoing 2-way auction in the Nasdaq. It has guest appearances like a TV show, but the primary cast is the same.
The current guest causing a big splash is Mr. Jack Ma. He has a character about him—one that brings a touch of drama to the sell flow in BABA. Other guests currently in play are Oil, Rusty (The Russell), and le VXN.
But the primary plot today was to watch for follow through higher on yesterday’s strength which will find responsive sellers. This happened, we nearly printed a neutral extreme (this settlement period buying is making an earnest attempt to make us neutral only), and that is how we found our seller. Now the question is whether they carry the same tenacity and flow as their initiate move, or if instead we enter a churn. No one can say for certain, however I adjusted my book in the interim.
I sold half of my TWTR long—there I said it. It was awkward because I have been with this long since about February. I rode through the entire trough, being supportive and sharing ancient Roman and Eastern philosophies with it to build a strong foundation. I made sure it had good nutrition and when it still acted up I would just coddle it and tell it everything will be okay. But one must draw the line and I had to create a bit of separation. This is good for both of us. Twitter has a big event coming up (earnings) and I would rather be a side piece just in case it does not turn out as expected. In any case, I can always work my way back into the weighting I once had.
I also joined the 12631 crew on the TZA trade. This is good. I have a hedge in place now verses my other longs. Speaking of which, GNRC caught a little upgrade this morning. I like this company into the winter. Their product runs on cheap natty. No home is complete without a natty gas generator, IMO. Especially in Michigan, where the sun seldom shines but a deep enough hole yields pockets of the sweet gas. If the proverbial excrement hits the fan, you will likely find me digging deep, Kevin Bacon style, for gas to power the mother ship.
We will ride through earnings together, shotgun in tote.