Penny for your Shorts?
Penny Lane is in my ears and in my eyes.
There beneath the blue suburban skies
I sit, and meanwhile back
The late afternoon is edging along as the Minx bumps and grinds her way towards the bell. While the major averages are nonevents, there's some serious undercurrents in motion. Have you seen the housing stocks today? The frisky financials? The slippy semis? Talk about a riptide, Dano, it's dizzy with eternity!
There's no denying that the overall traction (thus far) is impressive. What remains to be seen, however, is whether this is suck-in city or an upside wink. A lot of shorts have towel tossed as a function of the action (and in front of Microsoft (MSFT:NASD). As it stands, it's too early to tell if that's disciplined trading or the type of "they're never going down again" thinking that Boo likes to see.
I don't think we've seen the brunt of the ursine hunt but I've been in more of a fade (rather than press) mode. A lot of my exposure is via options (as a function of the cheap paper) and I "think" that'll pay off in spades. Still, I'm leaving room for a proper "scale" should the Jinx bounce, Microsoft impress or there is further squeezage in our midst.
I've gotten a lot of feedback on this morning's missive and I will only say that I much prefer to pen a piece like that when the market is near its (recent) highs. When the schvitz eventually hits the proverbial fan, there will be plenty of finger pointing. The best time to examine potential potholes is when the market is up--not after it's already suffered a smack down.
I'm gonna juggle hats and tickle ticks so lemme wish you well into the close. These have been a hairy few weeks--agita, not facial--and tensions are high. Take a deep breath, balance yourself and make decisions you can live with either way. At the end of the day, there are a lot of things more deserving of your attention.
Fare ye well.
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.
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