Aristocratic Trading

I did nothing and it paid off — because nothing be ramp higher since the afternoon began.

But it’s worth noting, had you gone into today with cool stocks, you’d still be down 2.3%, up from -3.5%. Whereas myself, I entered into today only with aristocratic stocks — high priced securities out of the claws of the plebeian class.

I am still 100% long and now +22bps for the session. Who knows what will happen till the close — but I am not selling these stocks. I rather like the idea of it — accumulating shares of very expensive shares. Not that it should matter, but something about price scares off the rabble of the third estate. They’d buy 200,000 shares of 50 cent stock heading to zero before buying a single share of a stock trading over $200. I’ve had these discussions with people for decades and have a keen understanding of how people think about these concerns.

As for the overall tape: a very wide chasm exists between small and large caps. I do not think it wise to buy into technically weak names over strong.