Searching in the darkness
Running from the day
Hiding from tomorrow
nothing left to say
Gathering up the courage
Ready for the fight
Howling in the shadows
'Til we start to bite
- "Creatures of the Night," Stanley, Mitchell (Kiss), 1982
Why So Dark on Wall Street?
I know, it's tough. First there was a little bit of pressure on equity index futures, a little pressure on Treasury securities. Then what?
Boom.
The Bank of England raised interest rates, while warning that the U.K. economy will slide into recession this year and there is nothing that the central bank can do to defend British households. Sure, all of Europe, including the U.K., will feel the pinch of a slowing economy, as shortages -- via Russia's war on Ukraine and the associated sanctions -- take effect. Sure, China's Covid situation just keeps getting worse. Surely the U.S. can not truly be isolated from all of this.
No. We're not.
In fact, the U.S. economy, we know, is already contracting. You kids catch the Bureau of Labor Statics' first quarter data for U.S. productivity and costs this morning? Well, did ya? There is no way to sugarcoat unit labor costs that rise 11.6% quarter-over-quarter when non-farm productivity falls by 7.5% quarter-over- quarter. That's right. U.S. businesses are paying a whole lot more for a whole lot less. Good luck with April "Jobs Day" on Friday.
Know Thyself
I know you're hurt. I know it stinks. Pluck that. I want you to dig down, and grab your soul by the collar. Make yourself pay attention. Not today, Mumble-plucker, not today. For today, we stand side by side, alone on the hill, hands holding glorious sabers unsheathed ... as the enemy rides down upon us. Today ... we make our stand, with hungry hearts, and the anger and honor of the thousands who have gone before us. We wait with energy unfurled. Unleash the beast within. Fear is but for the wicked. So, let the wicked tremble before us.
Get Unleashed...
Understand... that you do not control this environment. Be pragmatic. Narrow exposure. You are not helpless.
Identify... Avenues of attack, targets of opportunity. Fight a defensive battle if you must, on the ground of your choosing.
Adapt... Lost money? Maybe Beaten? Never. Become the wilderness. Use humankind's greatest gift: "The ability to reason." It's why you aren't still hunting and gathering. You can learn to evolve as environments change. Or, you can wither and die.
Overcome... Don't see a path? Stay quiet. Stay low. See what you need in the way of forward looking statistics and probabilities? Act and act with decisiveness. Hedge. Target prices and panic points on everything. Act only in ways that can be easily explained. Risk management is far more important than any other skill for both trader and investors. Learned that the hard way.
Maintain... Level head. One victory? Good. Move on. Protect yourself while seeking the next target. You can. We can. do this.
Remember
Only those who have given up can ever be defeated. Remember that for the rest of your life. Now go. Seek victory.
