I climbed a mountain and I turned around….
The New York Stock Exchange was looking like one of those heavy lifter bald headed bouncers that guard nightclubs – except they were on a cocaine rage. You can imagine what I did with my trading today. It did occur to me to just shut things off and not trade but since the pre-markets were relatively calmer than yesterday, and because I was feeling the vibe of a blustery Manhattan morning I decided to give the markets a go albeit with a very very tight risk exposure.
As I suspected, the market was trading very thin. It should be noted that I did not go to the Starbucks in Broad St. I don’t know, I just woke up this morning not in the mood and decided to go to the Starbucks near our hotel. So here I am sipping on some hot apple cider and I just don’t see a way that I could trade the general market with any meaningful expectation. Sure there were swings of 15-20 points and then we even got that big doozy of a 50 point swing but like I commented on another site, you just can’t make money in a market that’s taking prisoners from both the bulls and the bears – and boy, if you were a pig you REALLY got slaughtered.
I didn’t trade other assets because I am starting to feel like the panic from Wall Street is starting to make itself known in the commodities markets as investors are running for anything that resembles nice & steady price action.
Here’s the thing; right now the markets are soupy. Somebody obviously took him out for some tequilas in Mexico and during the ensuing craziness gave him that questionable tap water for hydration. The selloff we are seeing is the diarrhea. We are getting rid of the parasites, the superfluous money that has frothed the market up. What I would like to see is the market get some “girth” again. I want to see all the levels of the DOM fill up with a good number of participants on both the bid and the ask. Then, and only then, will I feel comfortable to go in with size. Skittishness does not make for a good market.
I’m very thankful for this beautiful day in the city. The wife and I have most of the day to ourselves after 1:30 so we’ll go off and do some more city things. I will probably take her walking around Central Park as she loves that kind of stuff. Even though I didn’t make a meaningful amount of money, I’m just glad that I didn’t lose anything. I will probably not trade tomorrow or if I do it’ll be the same risk-averse methods I’ve used today.