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A View with Some Room

By

Good luck into the close!

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"That is why you'll never be a great detective, Cato. It's so obvious that it could not possibly be a trap."

--Chief Inspector Jacques Clouseau


The afternoon flow is exceedingly slow as the Minx nips and tucks at the recent plateau. The question, for me, was one of degree as I wanted to see what the bounce would be. Thus far it's anemic (and not very scenic) but we're still in the zone where Snapper can zing it. Will the turtle impress despite his bad breadth? He could, I suppose, if the crowd is now pressed.

It's hard to have too much conviction (for the rest of the session) when it's this wispy thin. The breadth and Citigroup (C:NYSE) are telling you to steer clear while the semicaps and retail are begging you to fear the turtle. Other than rolling some exposure (from November to January), I've spent the better part of the day scanning charts, reading research and listening to Fokker dreamily discuss his new love interest. She must be special...he keeps doing push-ups so he gets "pumped" in time for his big date!

In all seriousness, the ability not to trade is sometimes as valuable as trading ability and I've done a bit less. The gorillas were swinging this morning (on the sell side) and I'm currently trying to get flavor on whether they'll be back (pressing) or looking to unwind (covering). My thoughts regarding how I wanna be set up (consumers over cyclical, long "situations" and short financials and tech (via defined risk puts) remains the same. Against that, I can (and will) trade to augment my exposure intraday if need be. Net/net, I'm allowing for some near-term bounce but wanna fade (read: sell) rallies. And obviously, I share these thoughts with educational intent (as opposed to advice).

So that's where we stand. The S's are toeing 1044 (as we thought they would), the NDX is trading (marginally) below support (which will now act as initial resistance), the internals leave a lot to be desired, gold continues to firm (although gold stocks are off) and yours truly has to go get a flu shot. I felt it creeping up on me over the weekend and, sure enough, I'm now face to face with Mr. Bug. You're not a bug, are you gnat?

I'm gonna turn my lid around and play trader but, before I go, I want to welcome all the new Minyans into the fold. This community was built with a mission of philanthropic education and I hope you find it as rewarding to inhabit as we do. Over the next weeks, months and (hopefully) years, we want to make a difference in people's lives. With your help, we surely can.

Have a peaceful night.

position in ndx

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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