Range Bound Trading - Lets all relax for a few days
The Hedge Fund Live Collective intelligence has been on a roll. Up over $200,000 in the first 2 weeks of the year, we are in a zone. The market continues to move up, irrespective of the fact that so many believe it should pull in, or perhaps specifically because of that. As I have already stated in my year-end market prediction from my last blog, I will try to stick to the near term. What happens on Tuesday? I expect a shaky open. Within the first couple of hours we should see a 5 – 10 point sell off. Think of it as a “Relief Sell Off”, it exist simply to satisfy our need to know that we still can sell off. Perhaps it lasts the day. If it does, than I expect a number of failed rallies through out the day. Sometime over the first 2 days of the week we will have the first of what will be a series of upward tests at the 1300 level on the S&P. Getting confirmation of a sustainable rally above the 1300 level will take some time, and it should. This should set up for a few weeks of healthy range bound trading.
Tuesday though, marks a new chapter of my personal journey. I begin Yoga teacher certification training on Tuesday. I expect 3 of the most intense months ahead of me. I will spend every free moment with my family; otherwise I will be at the office or in the yoga studio. Good thing HedgeFundLive and the Yoga studio are the only two businesses in the building. I will arrive at the office at 7:30 am. Meditation till 7:50 am. Business and trading till 6:10pm. Tuesday night Yoga certification training 6:10pm to 10pm. every other night, regular scheduled class, 6:10pm to 7:30pm. Put in another hour of work wrapping up the business day. Home to see the family 8:30pm till my body gives out. The weekends will bring little relief. Actually every other weekend will bring the needed sanctuary, as I will be able to spend them with my wife and kids. The other weekends will be spent training. Sat 7am to 5pm. Sun 7am to 12pm. Sun 12pm to 5pm catch up on work. Sunday 5pm to Monday 6am catch up on sleep.
Traders start at a very early age
There are a number of other interesting twists to this journey. NO ALCHOHOL. Yes, you read it correctly. I will be dry for 3 months. I have always considered myself a functional alcoholic; I am concerned about being a dysfunctional non-alcoholic. I do not believe I have gone more than a week since junior year of college, without a drink. Maybe even 3 days, but I am concerned that this might turn off potential investors in the firm, so for now we will stick to a “week”. I am not even sure what I will be like sober for 3 months. I am not even sure how my Meds will work if I am not washing them down with a Cabernet, Jack Daniels, or a glass of Port. I once heard an MD at a major Wall Street firm tell me, “If drinking is interfering with your work, you’re probably a heavy drinker. If work is interfering with your drinking, you’re probably an alcoholic.” I have always seen a bit of brilliance in this advice.
Next, NO RED MEAT. Yes, you read that correctly as well. I come from a long line of carnivores. I do not believe I have gone more
Traders start on meat at a very young age
that a week without a steak, veal chop or burger since I was a Bar-Mitzvah boy. If you include Cholent (a traditional meat stew:Jewish Tradition), it may even be 3 days at max……. Leo Tolstoy said “A man can live and be healthy without killing animals for food; therefore, if he eats meat, he participates in taking animal life merely for the sake of his appetite.” I was always under the impression that red meat was an essential ingredient for life sustenance. As the prolific modern day philosopher John Cleese has said, “If God did not intend for us to eat animals, then why did he make them out of meat?” No red meat will be quite the enlightening experience for me. There are a number of other major “NO NOs”, but lets jump right to the most interesting one for those who know me well.
NO EGO. Yes, that’s what I said, “No ego”. This is the one I am truly intrigued by. I was born with my ego. I can assure you I have not gone one hour, let alone a full day, without my good pal “Ego” helping me make daily decisions. I am now expected to say goodbye to my friend of 42 years. Go it alone, leaving “Ego” to fend for himself without
Trader's are born with their egos
my mind and body to carry out his every wish and desire. And I am expected to embrace my “Self”, to see beyond my perceived limitations. John Bradshaw, the acclaimed motivational speaker, said, “The Ego is to the true self what a flashlight is to a spotlight.”
This Tuesday will begin what will be an enlightened extreme experience. Expect enlightened blogs and enlightened trading. Stay tuned.
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