The Rock Ridge Rattle
Ride 'em cowboy!
Then one day I hear "Reach for it mister!" I spun around, and there I was standing face to face with a six year old kid. Well, I just laid down my guns and walked away. Little bastard shot me in the ass!
--The Waco Kid, Blazing Saddles
The happy trails begin anew as the first spurt is to the upside. The pure eyes spy a spunky SOX (semicaps higher on constructive Taiwan Semiconductor (TSM:NYSE) comments), breadth that's 2:1 positive, lagging cyclicals (Cummins Inc. (CUM:NYSE)) and futures that seemingly want to go shopping in the gap (S&P 1038-1045). And to think...we've only just begun!
I'm being told that the short based has ticked up (in the last week), and that's likely contributing to the early jig. While it certainly seems that Hoofy brought it A-game, we all know that Elmerfests are typically divided into two distinct sessions. Further, Dubya has announced an 11:15 conference call and the topic is yet unknown. It could be in response to California fires (likely) or it may be something more remote (Rummy bolting?). Either way, put it on the trading radar.
I've done more watching than trading today but have added to my current positions as a function of price. I'm still in the Burned Razor camp and, as long as we stay below S&P 1050-1060, will remain there. As a hedge, I've got cheap (and cheaper) upside paper (read: calls) that will buffer the suffer if I'm dead wrong. Along those lines, toss IBM (IBM:NYSE) on the "stocks to watch" list as it tries to fill the earnings gap (90-93).
Jamming a bit this morning so lemme hop, rabbit. As always, I hope this finds you 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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