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Clearwater and Muddy Paths

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I see the bad moon arising
I see trouble on the way
I see earthquakes and lightening
I see bad times today


(Creedence Clearwater Revival)

Boo just came strumming by with his banjo and I asked the little fella to stop playing games and come sit by my side....there's work to be done. Begrudgingly, our resident bear sulked over to his seat, sat down next to me and asked me what was going on. Here's what I told him:

The action out of the gate was impressive as the semiconductors immediately sprouted green and multiple Spoo (S&P futures) buyers hit the pits at the same time. Almost on cue, my IM lit up with "they don't care about bad news!" "They act great!" and "They can't get 'em down." I had to remind my trading brethren that the market had been open for 25 minutes and it's entirely too early to make those assessments. Remember, the first half hour is typically just noise before the true tenor asserts itself. Deep breaths please.

That said, the semiconductor space does act well on the heels of more bad news and I'm trying to get a handle what type of demand it is. We know the space is heavily shorted and certainly, some of these buyers are covering up their shorts. I checked to see if the "look through" mutual funds were buying these names and I was told that the flow was dominated by the hedgies. Away from that, the financials act relatively heavy (haven't rallied with the futures) and my eyes continue to migrate towards Citigroup as the main tell.

Meanwhile, the bond market is green (shocker) and I've put JJ on Alligator watch for the day. I figure, if there's an IZOD out there, Brandon Walsh will find it! Again, it's early people and there's much time and many trades ahead. Stay focused...I got a tingly feeling today.

Be back.
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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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