Gold is down $12. Maybe I'll finally get that ring I've been waiting for!
The harder they come
The harder they fall
One and all
The morning fun is on the run and the minxy games have officially begun. We sensed that they'd try and rally--and they did--but the mood soured quickly. As the cannons boom in the background, I can't help but think of the AOL/Time Warner merger (TWX:NYSE) . The landscape is surely different but, oddly enough, sentiment is much the same. Is this bank deal validation or culmination? Ultimately, I think the latter (particularly with Elmer's hubris) but that doesn't mean it starts right here, right now.
The breadth has started to stink as there are now two losers for every winner. The BKX remains firmly in the green but please note that Bank One (ONE:NYSE) has a 5.3% weighting. In other words, the big dogs (Citigroup (C:NYSE) and Bank of America (BAC:NYSE)) are lower but the outsized move (caused by the takeover) is skewing the index. The brokers, for their part, are higher on the perception of continued investment banking business (and good looking charts).
The semicaps sure seem crowded as they dance on either side of unchanged. That's surprising in the face of a less than thrilling capex number ($3.6-$4B vs. whispers as high as $4.4B) and has raised an eyebrow in the city of critters. Yahoo! (YHOO:NASD) is down a deuce and that's offsetting the sentiment buoy. Speaking of the collective wisdom, the volatility measures have barely budged (indicating a lack of fear and continued complacency).
S&P 1123 and NDX 1515 are the first areas of support and the bulls are trying to toe that line. It's wild and wooly out there, Minyans, so be prudent with your risk and disciplined in your approach. If you don't know, don't guess and regardless of what happens, don't look back. It doesn't matter how many trades you make, it only matters how many trades work out.
As always, I hope this finds you well.
Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at firstname.lastname@example.org.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter