He’s Back…..

Joey Borsellino was back in the pit today. It’s great to have him back as his trading is a terrific gauge of the market. Joey and his brother Lewy started in the gold pit and moved to the S&P when it first opened. Lewy is no longer a local …umm… I heard his style of trading did not sit well with the compliance department.

However, his brother Joey is still hanging in there. He was in Italy, Naples (where my ancestors are from) for 3 weeks and then was on and off the floor for the last week or two but never traded in the pit. Joey is a very aggressive trader. He likes to push the market often selling through the bid on an aggressive push lower. Sometimes he gets his way and sometimes he doesn’t. What’s great is that he falsely moves the market. In other words he is not part of the market auction process where bidders and sellers decide on price. He is a market bully. That’s just fine with me because when he is getting his way he paves a way for the path of least resistance and I have a better understanding of where the market is heading. Often the market will bounce back like a rubber band once he is done with his aggressive pushing. Today he came in aggressive and was able to muscle the market lower but as soon as he let off the gas the market came right back. This is when I know the market wants higher prices which is exactly what we got for the first Monday of a month.

Paper buyers came in off the open and came back soon after. When the locals see all the houses with two hands in the air - palms facing in, they know that this is a battle they should join and not fight, not on the first Monday of the month. They jumped on the bid as well and up we went. Joey was part of the push that came in after the IB was formed but once we saw that the move wasn’t getting any steam there was only one other way the market was headed - up.

I am still thinking lower prices but I will simply drift with the wind and go along for the ride.



Tim Mack