The market is the final arbiter. This is something ChessNwine reminds traders of weekly in his strategy session. If you find yourself becoming frustrated, euphoric, or BABA forbid panicked, then you are likely attempting to impose your will upon the market. You are entering trades knowing they HAVE to be right because you are so god damned bright.
This is a fool’s game. Well not quite. It is a game for the humble sportsman (or sportslady?) who is tickled by the extraordinary. And there is one thing you must impress upon your method if your method follows the tenants of momentum—your allegiance is to be sworn to the heaviest puncher.
The price action we are currently experiencing in the marketplace is peak abnormal, which, oddly enough, normally happens once in a while. It is a good thing, a notch in the belt of survivors. But think quick because you have not survived yet. This is an ongoing extravaganza.
Equity markets are rallying hard today. The Nazzy wants a 100 print after pulling the inverse last week. Remember what I said last week? About big waves? You settle your heart by taking slow consistent breaths and allow it to take you as it desires until it throws you loose. Then you begin to swim.
I am still doing very little, however, given the magnitude of the harmonic down, one was fortunate enough to back off the idea of hedging until a proper revision occurred. Now it has, we are over the mid, and I am wondering if the bears jumped the shark with this move.
I know, it sounds crazy, perhaps fiduciary questionable, but sitting and taking that sell flow to the nuts for a few weeks might have been the best course of action for longer term positions. Again, this is all still TBD.
The rub? They timed the rout about perfectly to zero out your October leverage. Mine too, those fucks. But sharpen your axe, purchase common on discount, and hone your strategy for another gregarious thrust.
You thought I was done thrusting, didn’t you? You must know, Raul possesses the energy of 10 adhd afflicted teens.
All this to say I made no alterations to my book today. This melt up was a gift however to my long term positions which are making admirable recoveries. I still might dial them back. However, this must be done very slowly, not all at once.
Think fast, move slow.