Some days seem longer than others. Today was one of the long ones.
It started with my 6 year old daughter slapping the side of my sleeping face and telling me to “wake up.” Normally this is a cute, but after a cold weekend on a frozen river in central Maine “smelting” with college friends, I was hurting. “Wake up Mommy first,” I said. (Note: My wife, Judy, is 8 months pregnant and miserable.)
After Judy expressed her displeasure with me by banging the shit out of the pots and pans in the kitchen while she prepared my daughter’s breakfast, thereby disallowing me the luxury of extra sleep, I woke up. I walked into the next room and turned on my screens. The futures were gapping down a bunch. “Finally!” I found myself thinking. I immediately felt a pang of guilt as I realized the market was only gapping down because Gaddafi is a dick. The guilt eased as I decided that wanting a little stock market volatility wasn’t the same as wanting protesters in the mideast to be slaughtered.
Gaddafi is (was) a dick.
Look, as it sometimes happens in this business, what’s good for me is often bad for some, okay, maybe millions, of people.
That doesn’t make me a bad person. Hating handicapped parking spaces might though… they’re always empty. Seriously.
Anyway, I decided that it would be a tough day for support buys. We’ve been going up for what seems like forever, when we turn down for real, could take at least a few days for buyers to show up again. But then I always have difficulty shorting into a gap down. I decided to just chill out, take it easy, and let my long weekend wear off. My wife yelled up the stairs that they were leaving. They were going to have a “mother and daughter” type day. My kid is off from school all week. I said goodbye and the market opened.
Along with my friends at HCPG, I was watching SQM for a support trade at $53. When it opened there, I knew it was going to have to trade lower if I was going to get involved. It made a quick move down to $52.25 and started to bounce. Two minutes into the bounce, at 9:38 a ton of volume went off and I decided to give it a whirl. I picked some up at $52.57, put my stop just below the low of the day, and waited for the sweet money to hit me in the face.
The stock complied moving upwards very smoothly. I didn’t even curse once while I watched its ascent. From downstairs, I heard the backdoor swing open and then splashing sounds and some grunting. My wife was letting it all loose on the kitchen floor. “Hey, I’m trying to trade up here, for chrissakes!” No response… not even the customary “Fuck you” that such insensitivities should elicit. I moved my stop up to breakeven and went downstairs to “help.”
There she was, crumpled against the downstairs toilet, saying goodbye to breakfast. She told me to go check on our daughter out in the car. Now, I had seriously crawled out of bed and started to trade. Since I don’t turn the heat up in the house past 60 nowadays, I sit in a chair wrapped in a blanket my grandmother knit me when I was 13. So yeah, it’s over 20 years old and, well, colorful. I was also sporting the pajamas my daughter had given me for Valentine’s day (think hearts) and slippers.
I approached the car. She was drawing. She didn’t see me coming, but just in case she happened to look up, I decided to do the mock tip toe with a crazy look on my face. Heart pajamas, slippers, funny blanket, mock tip toe, crazy face… Of course, that’s when I saw my neighbor walking his dog in my direction. “Hi Jeff,” I waved. He gave me a strange look. He couldn’t have seen my daughter in the car.
People must wonder what I do all day.
I opened my daughter’s door. She didn’t even look up. “Daddy, I need a brown pencil.”
Back inside, my wife was brushing her teeth. I grabbed a brown pencil and gave it to her. I gave her a hug and apologized for getting her pregnant again. I also reminded her that women used to have many more kids back in the 50s and that if we didn’t have a boy this time, she’d be having another in about a year. She left unamused.
My SQM trade was working out despite all the hubbub in the house. I nearly sold some into S2 at $53.14 but given the severe bounce overtaking the ag stocks like CF, MOS and AGU, I decided to hold it a bit longer. I took off half at $53.36 and then the last half when the stock got rejected by the 20 ema on the 5 minute chart. My average exit was $53.42, for an 85 cent profit.
Follow Dinosaur Trader here: