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.

Where Wolf?


Watch the banks as they battle BKX 950.


The wolf came in, I got my cards
We sat down for a game
I cut my deck to the Queen of Spades
but the cards were all the same

(Grateful Dead)

The morning dew begins anew as traders search for hints of Boo. The early test brought daddy's nemesis (S&P 1050) back into sight but, as it stands, the opening gap (from yesterday's yap) held. I know Hoofy...shocker!...but stop yawning long enough for us to take a quick walk 'round town.

The question on all our minds is whether S&P 1060ish will prove to be a turning point. The bulls will point out that this current phase is exhibiting all the characteristics they're looking for (leadership, internals) and, even if there's a pause, they're quite willing to buy dips. With all the comparisons between now and 1999, why would they not?

The bears, despite the insistence that we've cleared all technical hurdles, maintain that layers remain "in and around" S&P 1060. Further, they opine, there is a universal belief that equities are going higher and bonds are heading south. While that may prove to be true, they know that a lopsided vessel is more likely to capsize.

Is the Burned Razor still a possibility? It is, but time (and price) are starting to run out. With Cisco (CSCO:NASD) reporting tomorrow and important economic data due later this week, the writing will be on the proverbial wall of worry. My strategy? I own a bevy of downside puts and continue to hedge that exposure with (dollar kind) front month calls. The gamma game has been a drippy drain but in this type of environment, I prefer that stylistic approach.

As always, I hope this finds you well.
< Previous
  • 1
Next >
position in csco

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