Wanted: One Cool Customer

Different market environments call for different temperaments, and this tape calls for One Cool Customer.  The cross-currents lately are absolutely cartoonish – back-to-back-to-back triple digit rallies while each morning we are treated to fresh evidence of Slouching Housing, Hidden Consumer.

A lot of pros were washed out at the bottom this month when the 8 or 10 month moving averages that they use as stops were violated.  Right on cue, the S&P rallied 6% off those lows during July, almost out of spite.  The frustration is palpable and people are getting heated.

What to make of it all?  I don’t know about you, but I’m looking for cool heads and calm direction – so I’m reading a lot of Leigh Drogen lately on his Surfview Capital blog.

You may know Leigh from the StockTwits stream.  He is in this market, not just discussing it.  And Leigh Drogen is cooler than Lenny Kravitz in February.

Based on his writing, it appears that he’s back to playing his momentum faves and making mental room for the possibility that the tape is, in fact, getting “healthier”…

It’s hard to sit through pullbacks, but as Jesse Livermore said, the real money is made by sitting, not by coming and going.  The last two days have been a tough chop fest where you really don’t want to be trading.  I took off a decent amount of long exposure yesterday morning at the top, but not enough to keep me from looking at my book today and cringing, just a little.  Even when you know what’s about to take place, and that your plan is to let it happen and buy into it, watching your P&L move against you is never fun.  Today my second largest position, and what is a normal position size in $WPRT is down 10%, not fun.  Other than that, everything is acting predictably soft, consolidating nice gains from the past week or so.  We’re not playing for peanuts this time as has been the case the past three months.  It’s time to make some real money as the market has become a bit healthier.  Raise your stops along the way and buy the pullbacks.

Whenever sentiment and the direction of the market diverge so drastically as is the case now, the key is to stay cool.  For smart, emotionless market commentary, keep Surfview on your reading list.

Source:

We’re Not Playing For Peanuts This Time (Surfview Capital)

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. click here commented on Sep 14

    … [Trackback]

    […] Find More Information here on that Topic: thereformedbroker.com/2010/07/30/wanted-one-cool-customer-2/ […]

  2. blazing trader commented on Oct 01

    … [Trackback]

    […] Information to that Topic: thereformedbroker.com/2010/07/30/wanted-one-cool-customer-2/ […]

  3. Regression Testing Services commented on Nov 28

    … [Trackback]

    […] Find More on on that Topic: thereformedbroker.com/2010/07/30/wanted-one-cool-customer-2/ […]

  4. Intelligent Automation Solutions commented on Nov 28

    … [Trackback]

    […] Find More Information here to that Topic: thereformedbroker.com/2010/07/30/wanted-one-cool-customer-2/ […]

  5. replica tag heuer wj1110 0 commented on Dec 08

    … [Trackback]

    […] Info on that Topic: thereformedbroker.com/2010/07/30/wanted-one-cool-customer-2/ […]

  6. azure Devops commented on Dec 09

    … [Trackback]

    […] There you will find 71789 additional Info on that Topic: thereformedbroker.com/2010/07/30/wanted-one-cool-customer-2/ […]

  7. 토토사이트 commented on Dec 09

    … [Trackback]

    […] Find More on that Topic: thereformedbroker.com/2010/07/30/wanted-one-cool-customer-2/ […]

  8. Sexy chemical commented on Dec 28

    … [Trackback]

    […] Find More Info here on that Topic: thereformedbroker.com/2010/07/30/wanted-one-cool-customer-2/ […]

  9. DevSecOps Services commented on Jan 18

    … [Trackback]

    […] Read More on that Topic: thereformedbroker.com/2010/07/30/wanted-one-cool-customer-2/ […]