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Street Signs

By

What's wrong with the mighty BEAR?

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She lives on Love Street
Lingers long on Love Street
She has a house and garden
I would like to see what happens

(The Doors)

The morning madness is underway as the critters venture into the fray. As is often the case after the Minx closes on her highs (lows), the upside (downside) was probed in kind. Now, as Dr. Cocktostosen returns to the links, a truer picture of the supply/demand equilibrium has emerged.

An early check of the morning breadth has winners trumping losers 9:5 on the big board and 3:2 for the four-letter freaks. The tone is jumpy and thin and I'm seeing early two-sided flow. The buyers mission in the rain is clear--they want (need) to spur the herd through S&P 1060 and trigger a group hug. The other side of the equation welcomes the optimism as the more crowded the acne crowd gets, the more panicked they'll be at the exit. That dynamic would likely increase massively if we edge through that level.

Taking a quick sniff around the 'Ville, the dollar is giving some of yesterday's gains back as the metals (and metal stocks) inch green. The financials are mixed as the Goldman Sachs (GS:NYSE) upgrade dukes it out with disturbing action in Bear Stearns (BSC:NYSE). The drugs continue to smoke the dopes (Medicare bill), energy is picking up (seeing bullish flow), the cyclicals are trying to lead (on the heels of Deere (DE:NYSE), the semis are sticky green (with the noticeable absence of Intel (INTC:NASD) and the media names have a bid.

I'm a bit torn here as it almost feels as if S&P 1060 wants to be taken out before a messier spill can emerge. The wildcard is the thin Lizzy that we're currently wading through. It doesn't take much to move this beast and the gorillas are lickin' their chops. That, coupled with a looming month (and year) end adds spice to an already tasty mix. I've got my requisite positions on and, as it stands, I'm doing a bit less. With that said, I am intrigued with the reason to the Bear Stearns rhyme. Watch this name.

Every Minyan has a distinct style but I will offer that most everyone I speak with is gripping the handlebars rather tight. Take a deep breath and don't place so much emphasis on the next five minutes. Map out a strategy, remained disciplined and remove emotion from the equation. As we know, emotional decisions almost always have a way of biting you in the can.

As always, I hope this finds you well.
position in gs, qqq

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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