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.

The E-Ticket Ride


"Purple Raines" or "1999"?


Riders on the storm
Riders on the storm
Into this house we're born
Into this world we're thrown

(The Doors)

The Hump Day jump continues to thump as the bears have been scared by a kick in the rump. The blink-and-ya-bought it pullback is old news by now as merger mania exacerbates the prevalent performance anxiety. The resulting run has pushed the Spooz and Nazz to fresh '04 highs and irradiated any short-sighted short-sided bets. All systems go? They'd better be, because if something comes along to spoil the fun, there aren't many seatbelts fastened.

We spoke yesterday about the necessity of catching moves versus rationalizing them. To be sure, the trader who caught the double in Google (GOOG:NASD) couldn't care less "why" it occurred, he (or she) only cares that the "P" is bigger than the "L" at the end of the day. Succo and I had this conversation last night over some schnitzel and he posed a good question. There's no doubt that someone nailed that trade but was it the same guy who nailed it last time? In other words, the results of the at-bat matter but properly executed mechanics will allow you to stay in the game. Chances are, the hitters who swing for the fences will strike out a lot more than they hit home runs.

So what are those mechanics? They're unique to each Minyan but I've found trailing stops and option strategies to be helpful from an execution standpoint and sector rotation to be useful on the implementation front. The "S's over N's" or banks over semis or energy/metal migration are all subplots in a bigger script that can allow for little picture wins in the big picture sin. I find this "granularity" to be helpful, particularly when the big picture punches are being pulled.

I have a bevy of underneath puts that will sprout wings and fly to heaven on Friday but have managed to offset that regret with a handful of situations and scalps in the energy space. I understand that most traders want Prince to perform at their holiday parties but I've never been very good at bandwagon trading (know thyself). With the tape this extended and the boat as lopsided as it is, I'm content to pick my spots and keep some gamma dry.

For what it's worth, my friends, and shared cause I care.

As always, I hope this finds you well.


No positions in stocks mentioned.

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

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.

Featured Videos