Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Booberry Pancakes

By

PrintPRINT
As my good friend Eddie always says, sometimes you're gonna be the bug and sometimes you're gonna be the windshield. Boo invariably felt like a little gnat today as Hoofy and his friends left tread marks on his fur. Speaking of bugs, I am going to do my best to shake this flu thing so I can get back to being my usual sharp and witty self. For those who don't know me, yes, I am being facetious.

At any given point of time, there will be a bull and bear argument for why a stock (index) should be higher (lower). I just opined to our humbled bear that eight short sessions ago, when the Dow was over 1300 points lower, there was ample reason to be short and few reasons to be long. Now, after a most spirited sprint, the same traders who were pressing their shorts (then) are now chasing long exposure. I see the psychological sea change that's occurred and I am quite aware of the structural shift (asset allocation), but our ability to identify a disconnect between perception and reality will ultimately define our fortunes.

The tricky aspect to this particular juncture is just how far along the asset allocation process is. The lift that we've seen is clearly more than just the allocators, but the underlying bid by the pension funds has created a chain reaction of sorts and pulled money into the market. Long squeeze, performance anxiety, fear of missing...call it what you will, but it implies the same thing: a self fulfilling rally that will last...until it doesn't. At that point, the ability of the tape to make a higher low will define the Minx.

The earnings parade continues after the close and despite my love of trading and an affinity for conference calls, I'm going to leave these in the capable hands of my partners. Today was a battle-in more ways than one-but as Carole would say, my health is most important. Apologies if I dropped the ball a bit today. I see it, and I'll make it up to you.

Have a peaceful night.
< Previous
  • 1
Next >

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.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE