Exposing Ideas to the Envelope of Serendipity

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Monday, August 23, 2010

Fast, Loose, and Fuzzy

Flash Crash. Cardinal Climax. Hindenburg Omens. Frenzied price action. Imaginations and theories are running rampant, and as is most often the case, the market may have the last laugh. By nearly all accounts this has been a challenging market phase to navigate, and indeed recent action has been particularly fascinating, with many stocks in absolute melt-downs while plenty of others are trading near highs or holding up very well. We could be witnessing a large-scale (and somewhat violent) sector rotation taking place in dramatic fashion, and it's become increasingly clear that we're transitioning into more of a stock picker's universe as the market tries to digest the unappetizing uncertainty it is mired in. Until the clouds lift, focus must be on disciplined risk management, but there have been many stocks making strong moves in both directions for a nimble trader to take advantage of.

Trade well.

-- Brinkley
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