The New York Stock Exchange was as disjointed as I’ve ever seen it. With spreads going from two ticks to four on the NQ and the YM, there was literally no place to hide if you were the type of person that wanted to control their risk. I took a look at the front page of the Wall Street Journal and the paper labeled this market perfectly. We are still trying to find equilibrium after such a steep decline. The thing is, I’m not even sure if this decline is over. I still think we have a ways to go. After thinking that last Monday was the worst of it, I was really disheartened to see that we shaved off another 1k on Thursday. I know I said that I don’t care about what happens to the market but there is a part of me that doesn’t want to see everything go to shit because if we are trading shit then there’s no incentive for anyone to put money into anything as seen now with the volatility so high up. Who, in their right mind, would want to risk their hard earned money?
I traded the British Pound this morning and got a very productive return out of my forays but of course, I had to be uber careful of anything that could suddenly influence the trajectory of prices. The result was that I was wayyy too tired after closing the PnL and to see the Dow acting the way it was premarket was too much for me. I was not about to risk a productive trade in the British Pound just so that I could play the cash open. It just isn’t worth it.
This leads me to wonder just how long it will be until we see some type of peace in the markets. I personally, and I’m not being pessimistic here, I think that we will not see any equilibrium for another month and that’s really bad because a.) I depend on the cash open for this business and b.) it hints at a lot of trouble within the foundations of our government, not just the financial institutions. To see the 10YR move as dramatically as it did last week should give us all pause and concern. That asset is meant to be a mudbog where you jump in, sling out some trades on size and come out with a profit. But if the 10YR , heck if the both the 10YR and Long Bond, moves around the way it did, that’s just damn scary. But hey, if you want to get the gold, you’ve got to slay the dragon. I may just start trading the 10YR as a hedge against all this stuff. We’ll see. As always, I am grateful to God that I didn’t lose money today.