Perhaps a false sense of security, this market Is hanging on as we approach the closing bell. It has been one of those Octobers where the scary clown came out of his van, poked and grinned, and now sits behind the bushes in your backyard staring in the windows. Yet here we are, ‘normalizing’ and getting back to business.
The open was inside yesterday’s value, we tested higher and found responsive sellers, tested lower and found responsive buyers. This is the type of chop we expected about 3 minutes after the opening bell. We discuss open types and how they behave and what we can glean from them. Today was all about waiting for the market to tip its hand via a major rotation.
Buyers showed up, made the rotation, and it made more sense, intraday at least, to be hunting the long side. But don’t get me wrong, the big picture is spooky clownish ghoul and uncertain. Should we fear uncertainty? Should it elicit emotion? No, death is just as natural a change as birth.
I am playing my book so slowly right now it takes about 2 meals per decision. I reentered the GOGO today, hehe. This latest ebola spook didn’t last very long. It’s losing its potency or we are building up a tolerance. Like any drug, fear needs to be ratcheted up as the use increases. I joined Le Fly in CLR today, willing to build into another leg lower as long as I see buyers plying a bit of defense along the way.
Perhaps I will eat these words come Monday, but the overall scent of relief rally has emboldened my spirits. As have the ritualistic activities part and parcel to a cleansing.
The key to fast markets is not trying to catch every move and not fighting the big waves. Just take it all in, stay limber, and hit your notes when the Great Conductor waves his baton your way (take your trades).