Can You Be a Jekyll and Hyde Trader?

We all have our given biases, some obvious to us and others far more subtle. Recognizing and accounting for a given bias is instructive when it comes to trading, at least for us as humans in a market full of robots. 

And when it comes to politics, you can almost cut the air with knife in terms of how prominent the political headlines have been for over a year now. Indeed, market players are bombarded with politics in a fast-paced news cycle with new forms of media perpetuating those biases. 

As a result, when it comes to a chart like that for The New York Times Company, one we have observed before, many traders will likely dismiss trading the name out of hand due to a given bias, justified or not. 

But during this slow week leading up to the Fourth of July, not to mention end of the month and end of the quarter, now would be a good time to take a step back and acknowledge that being able to hold a personal political viewpoint can often be at odds with a given trade.

Since the NYT chart has vastly improved since the election of Donald Trump last November 2016, it is only fair to have it on the radar as a trade, possibly even as a long-term investor, as the technicals truly have strengthened. Even today, for example, in a soft tape we have NYT green and notably outperforming the market. 

Thus, being a "Jekyll and Hyde" trader with the ability to pivot and trade oblivious to a personal bias may be a key factor in the NYT's new uptrend as there seems to be a group of traders who will not touch the name on the long side regardless of how well the chart may look. 

To give you an idea of how much of an improvement we have seen from the NYT, the stock hit its highest level today since 2008. 

Earnings are schedule for late-July, which should pave the way for either a sustained leg higher into the back half of 2017 or perhaps a bit of consolation. But it sure seems likely sentiment will take a good while to come around to this one if we do see that new leg higher, not only due to political biases but also as part and parcel of the "newspapers are dead" mantra which, ironically, is in full circulation these days. 

More on the market in my usual Midday Video for Members.