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    Tuesday, September 23, 2008

    No man's land

    It's possible I get some very short term setups, but I am careful of what I trade. I'm more likely to get long JPY (yen futures), rather than mess with the constantly evolving game in US equities. I know several traders that scored, as well as many that were crushed out of business last week. Readers know I'm relatively risk averse in personality, so I wish to swim in only the biggest pools (think currencies, bonds, etc.). That said, it's my opinion that things should slow down while we muddle through all the recent news and ranges. Trades will be for several hours at most, until further clarification (perhaps another week?).

    One caution to all traders. Times like these bring many exciting stories, but true traders are not enthralled by action. Almost everybody that expounds on "their edge" lately is simply misguided, IMO. If you have never been tested similarly (and we have NOT), how can you know? I suspect many more will learn this before the calamity fully passes. Besides the usual risks, we have heightened volatility, as well as political risk and game changes (new, unquantifiable risk to most traders).

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