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West Coast Offense

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An oversold bounce is due...but do you sell into it?

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It's a brisk (early) morning in the city of Angels and the critters are actively scurrying about their Los Angeles digs. There's a collective spring in their step as they know that this is a big week in many ways. Before they play, however, there's a truckload of work to do...and they're just the critters to do it. Buckle your seatbelts--the Minyans are mobile and on a mission!

In morning news, Solly upgraded the semiconductor capital equipment group (to overweight) and General Motors (to Buy) and issued a positive report on Cisco, UBS Warburg upped Juniper and punted Dell (Buy to Neutral), CS First Boston cut specialty softline retailers, Citigroup reported earnings ('there') and housing starts were better than expected.

As you're aware, I slipped out of my bear costume late Friday and I'm currently without a metaphorical posture. While my reasons for wanting to hang with Boo are still very much in play, we know, from the morning post, that it's important to identify a time frame and trading style that serves as an extension of your mindset. After the 5% snip in the Nazz, 12% clip in the SOX, 9% nip on the BKX and a general malaise in the market, one could argue that we've already seen the "easier" trade. From a broader perspective, I think that fading (read: selling) rallies will serve us in good stead. For purposes of my chosen style (punch count), I've regrouped the troops and will take a fresh look.

The obvious keys today will be the financials in general and the brokers (XBD) in particular, the SOX (dandruff!), crude (chatter of Venezuelan settlement) and the internals. Also keep an eye of Microsoft for follow-through. Historically an "insider window" opens a few days after the roughneck from REDmond reports (insider selling).

I've got a lot of thoughts on the market and, as I'm sure you know, the Raiders big win in Sunday's A.F.C championship battle...which I'll humbly share as we slowly approach the biggest game of my professional life. As I made my way down Highway 5 yesterday (Oakland to Los Angeles), it was a silver and black caravan. I have to say, it felt good to be among my people!

See you after the opening.

No positions in stocks mentioned.

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 todd@minyanville.com.

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.

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