A Trade of Their Own
Let's go Yankees!
"All right, everyone, let's listen up now, listen up. Something important has just happened. I was in the toilet reading my contract and it turns out that I get a bonus when we get to the World Series. So, let's play hard, let's play smart, use your heads!"
--Jimmy Dugan, A League of Their Own
Alright Team Minyan, there's no crying in baseball OR trading so suck it up and let's settle in. The much anticipated earnings week is now half over and we're gonna need a strong showing from the bullpen to carry us through. Will the Minx dance with 'All-The-Way-Mae' Mordabito or boil with Betty 'Spaghetti' Horn? Dig on it and choke on up--we've got some heavy hitters coming our way.
IBM (IBM:NYSE) will bat clean up tonight and this is one name that is sometimes hard to game. In addition to a huge services business, they're typically skewed by major currency gains/losses. I know that there's been some balance sheet "issues" in the past so pay particular attention to the "quality" of earnings. Technically, we remain in the upside gap (from April 2002) that "works" to 97. That may be somewhat granular (or, more likely, not pertinent with earnings due) but I wanted to put it on your radar regardless.
There will also be a tremendous amount of information out between the next two bells so understand the potential for gap risk tomorrow (either way). It's gonna be busier than a hive of bees so use the last hour of trading to manicure your risk profile accordingly. In a perfect world, you want a "book" that you can live with whether we're up 100 or down 100 out of the gate. Clearly, we don't live in a perfect world but I think you get the gist.
As it stands, Hoofy is disappointed with today's performance but I don't think we can read too much into it. If everything comes up roses overnight (far from guaranteed), I don't know if Boo will have the clout to shout out another rout (off the highs). Still, he successfully defended S&P 1050-1060 and he'll take whatever victories he can get these days. And, for all you 12-day trendline watchers, we've broken the Nazz while the S's are pokie, mon (S&P 1045ish). So you know...and if you care!
Finally (phew!), I owe an apology to the Marlin Minyans for not giving them their respective due. I, like most everyone else, would like to see the Cubbies win but ya gotta give credit where credit is due. They're gritty! Sox fans? I will offer this: If (big if) you lose this series, I have a strong feeling that they might win it all next year (particularly if Joe Torre bolts). A little solace--with the full understanding that it aint over till it's over, Yogi.
I'm gonna flip and focus on the evening's festivities so allow me to take this opportunity to wish you all a peaceful evening. There's a lot going on (ya think?) and it's important to identify that ever-elusive balance. Maybe that means baseball, perhaps that means quiet time with the fam. Either way, all work and no play will make punk nuts of us all if we're not conscious to maintain the proper perspective. Don't forget to breathe.
Have a peaceful night.
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