The New York Stock Exchange had a good pop this morning. There was plenty of fast action and in the end we got a defined direction of strength. When I opened up my software, we were down 206 so I’m not exactly sure how much we can recover from that. I am only concerned about the broader market because it has indeed experienced a great runup and when there’s a runup of those proportions, the rundown can be just as bad or worse. Anyhow, the market will always be there. All that is really needed is an appetite for risk and the creation of volatility that goes with it.
I traded Feeder Cattle this morning and while it swung quite a bit, I just wasn’t comfortable being in the market so I decided that I would not trade itt anymore and get ready for the cash open. When the opening bell rang, there were a lot of places to perch from to trade. All it took was being at the right spot at the right time – which is what trading is mostly – and you would be rewarded with volatility going your way. Unfortunately for me, I was not at the right place at the right time and even though I made out with a couple of ticks on my trades, I didn’t do as well as I wanted to. It wasn’t even enough to be productive by my standards. I was better off just picking an asset of my choice and holding it for 1 or 2 trades.
The reason I titled the post the way I did was because when I went over the headlines in today’s Wall Street Journal, I saw that the Fed had held rates steady. I didn’t even know there was going to be a decision yesterday and it would have influenced the kind of risks I was going to take. I would like to work on my calendar reminders for things like the Fed meeting. There are some great trading opportunities there especially in the currency markets if you are so inclined. We are starting to warm up here in the East Coast, but only for a brief while before winter comes back. I will be doing some cleaning around the house and yard today so that should be a fun experience. I can drink some beer to keep me warm or something. I’m thankful that I have tomorrow and that I still have capital – the man upstairs is looking over me.