Kevin Tuttle's  Instablog

Kevin Tuttle
Send Message
Kevin A. Tuttle is the CEO and Chief Strategist of the Money Management & Capital Services firm Tesseract Asset Management, LLC (TAM). TAM serves as the General Partner of Long/Short Equity & Alternative Investment Hedge Funds and operates a Capital Services division oriented toward... More
My company:
Tesseract Asset Management LLC
My book:
Master Traders
  • TAM's Pedagogics: April 20th, 2011 0 comments
    Apr 20, 2011 8:28 AM | about stocks: SPY, VIXM
    ‘Another day of earnings driven volatility for the books’, said most yesterday while attempting to determine whether they should weight more long, more short or remain neutral. Today some may be wishing they did something different (more long perhaps). The markets, vacillating between bullish and bearish on any given earnings-season-day, are beginning to build an intermediate-term channel which will eventually turn into the determining point for the second half of the year.

    SPX Daily


     
    When stock volatility (standard deviation) remains high (not to be confused with CBOE option – implied volatility – VIX), it’s typical to see a reduction in volume due to a lack of institutional conviction. Institutions – averaging tens of billions per portfolio, not 100’s of millions – can’t afford to be 100% directionally committed until clarity appears; due to their sheer size and time constraint of allocation shifting. These intermediate channels, not unlike the one from May – September of 2010, give the market time to take pause, build strength (in either direction) and catch many inexperienced traders off guard. 
     
    The inexperienced will have the tendency to overtrade which creates a constant second-guessing of proper positioning and allocation. These are the times where less is more and giving your portfolio more room to maneuver is a sanity necessity.
     
    20-Years of experience – learn from my happenstances without having to live through your own.
     
    I hope this helps.
     
    KAT

    Stocks: SPY, VIXM
Back To Kevin Tuttle's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

Latest Comments


Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.