Apparently Pinchy Winchy was a game the Marx Brothers used to play with each other back in the day. It involved pinching the cheek of the guy next to you and I guess the loser was whoever didn’t find a cheek to pinch back. Now, don’t judge them too harshly – those boys didn’t have cable TV, the Internet, or computer games, and the bikinis of the time made a burka look outright frivolous in comparison.
No matter how talented or experienced a trader you are, no matter how disciplined or cold-blooded, sometimes you just run into a patch of bad luck. Case in point was my NQ campaign which was happily trailing along about -1R away, but then got suddenly triggered on the Turkey coup drop lower late Friday.
Due to recent developments here is what I should add to our current NQ campaign: ABSOLUTELY NOTHING. Yes I know, your fingers are itching and it is oh so tempting to mock with a running winner. Why not move that stop up just a little or take a bit more off the table? But I strongly encourage you to simply let her run until she either arrives at her target or touches her trailing stop. Per. The. Rules. One of the toughest lessons to learn for some traders is to simply sit on your hands and let your winners run.
Is it a bird? No! Is it a plane? No! What is it? It’s a bear being shot out of a canon! And I’m not even exaggerating as this rally may be nearing its first leg but is long from being over. The bears basically had been handed eighteen months to take this market to the woodshed and failed miserably. Every. Single. Time. The price to be paid is going to be enormous because a failure of this magnitude should come with an appropriate punishment.