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Fast Times at Minyan High

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The definition of an investment should never be a trade gone awry.

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"Relax, alright? My old man is a television repairman, he's got this ultimate set of tools. I can fix it."

Jeff Spicoli


Well are they gonna ing)" target=_blank>schvitz...or are they gonna kill us? That's the question on the lips of the critters as the crimson tide is riding high. The Hump Day reversal of fortune has been sharp and it's been painful for those involved in the old school names. The stage was set out of this morning's gate (no participation) but the afternoon spike in crude (so rude) pushed the pup over the curb. I've heard some low level chatter of pipeline explosions in Mexico and conspiracy theories in front of the debate but nothing tangible to explain the sudden spike (I don't believe it was purely a function of fundamentals).

While the fright is permeating (the VXO is up 32% in the last nine sessions), there seems to be little concern in the tech sector. It feels like funds are rotating money into the net and semi sectors and away from basic materials, cyclicals, financials and pretty much everything else. Will this rolling rotation allow the broader tape to escape? Not sure...the conditional elements for a legitimate scare are in place but, to be fair to Hoofy, they've been that way for a while. In fact, corporate spreads are still doin' the Alfred E. Newman in the face of this pace.

Apple (AAPL:NASD), Novellus (NVLS:NASD), Qlogic (QLGC:NASD) and Sandisk (SDNK:NASD) highlight tonight's parade while Citigroup (C:NYSE), General Motors (GM:NYSE), Fannie Mae (FNM:NYSE), Nokia (NOK:NYSE) and United Healthcare (UNH:NYSE) will usher in the morning dew. Mr. Beeks will also grace us with his presence and release the trade balance (exp. -51.5B), initial jobless claims (exp. 340k) and continuing claims (exp 2868k). And lest we forget, the two presidential hopefuls will duke it out with each other in between innings of tonight's Yankee game.

I'm gonna hop back to the Buzz and ride this tide so please lemme hop. Keep S&P 1120 and NDX 1440 in the back of your mind as we edge closer to the bell. The bulls want very badly to recapture those flags but I don't see much to suggest they will. Again, with so much on tap overnight and the macro crosscurrents as they are, the jury can deliver any verdict it wants. But in a world where we look to establish probability in our approach, the ducks seemingly wanna fly south for the winter.

Fare ye well into the bell.

R.P.
position in c, fnm

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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