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Hearing Aid

By

In the growing trend of "haves" and "have nots," I sincerely hope you have a fine session.

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I'm not afraid
Of anything in this world
There's nothing you can throw at me
That I haven't already heard

(U2)

Good morning and welcome back to the catalyst shack. Earnings are out and they're coming in quick as the critters get set for the flickering ticks. After last week's high profile freaks, the Tuesday slew is being chewed on quite carefully. Indeed, with geopolitical concerns picking up, energy issues crimping consumers and debt levels hiking up the Himalayas , the Matador Crowd can ill afford for the fundamental shortfalls to morph into a trend. They're watching--we're watching--everyone's watching. Frank Mueller would be proud.

We've been digging through the news over on the Buzz and there's a little something for everyone. Texas Instruments (TXN) reported last night and missed slightly, making the chip shtick a tech tell from a sentiment standpoint. Triple Nipple (MMM) missed revs as well, making it a key read in the old school. Johnson & Johnson reported, lending some fundamental flavor to the risk arb equation. And Pixar is in play as the House of Mouse looks to spark M&A fever and lend a bid to the brokers.

The Minx, of course, is looking to find some footing after Friday's fugly fall. The selling picked up steam once S&P 1275 and NDX 1705 broke and expiration influences exacerbated the volatility. Hoofy held his ground yesterday, albeit not convincingly, as supply side pressure quelled the Snapper attempt. He'll give it a go again today, with newfound resistance waiting above and a whole lotta hedge funds standing in a circle with their fingers on the trigger.

For my part, and consistent with what we discussed yesterday, I sold a slew of (financial) puts into Friday's close and further balanced my book on yesterday's opening. I nibbled on some Yahoo! and SunMicro for a schnitzel, the former a pure trade (with a stop below my cost basis) and the latter an addition to longer-term merchandise. I don't "trust" the tape, per se, but I could certainly see a lift to resistance before Boo unleashes his hounds. If I'm wrong--or if my trading tells start to turn tail--I'll flip lids in a hurry and play the game I've grown to love.

I'm gonna hop over to the Buzz before I get started on the Ford Layoffs and the continued migration to a two-class society. In the growing trend of "haves" and "have nots," I sincerely hope you have a fine session.

Good luck today.

R.P.

Position in SUNW, YHOO

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.

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