Have a milky sweet night!
Run for the money, caught short on the rent.
Big ideas, but the cash is all spent.
The trouble with love is it's on vase.
You just want a cup, but you don't want to race.
The critters are jammy but we wanted to toss out some quick love to ye News & Views faithful. Over on the Buzz, we've been discussing the overwhelming consensus that further upside is imminent (Phoebe on line 3!) and the juxtaposition of the S&P 1140 technical level. The bovine have tried all day to push through that zone and trigger "buy stops" and made a last gasp effort at 2:30 to self-fulfill. When the ducks didn't quack in the Matador shack, some holders turned tail and started to flail.
The dippage occurred just as chatter of a Kerry lead started to make the rounds. While the media may point the finger of blame on the democratic hopeful, the truth is that the long side got crowded and the tape trades like some folks are trapped. If you picture an upside-down funnel (lotsa people filing into a few names) and quickly turn it over (the same crew trying to exit a single door), you get the idea of what I think happened.
Where do we go from here? The words "trappage" and "hopeful" keep popping into my head although the overnight risk remains two-sided. We will likely walk into a gap opening tomorrow as perception dictates reality. Still, the "clarity rally" is so ingrained in the mindset of the masses that I have a hard time seeing it evolve cleanly. Perhaps we see a Kerry "drop and pop" or maybe we've already seen the "pop" before a Bush drop--I'm not sure--but up, up and away is never a given when it's widely expected.
I'm gonna hop as I've got some critters to feed before making my way downtown for a mindmeld. I sincerely hope that you caught wind in your sails today and, if not, that you aren't rationalizing your risk. We'll likely see some serious movement tomorrow so please "visualize" both sides and make sure you're alright regardless of the direction. If nothing else, the goal is one of consistency and stickin' around to trade another day.
May peace be with you.
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.
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.
Daily Recap Newsletter