The Band Stand
Lighten up while you still can
Don't even try to understand
Just find a place to make your stand
And take it easy
The morning fray is underway as traders trade and the critters play. Hoofy and Boo have joined me at my turret for three distinct reasons. First, we're trading 'em baby and they have a vested interest in today's tape. Second, they're haggling over the holiday party seating chart and want to see if any new bidders emerge. Third, we're gonna audible and call a special hump day edition SushiWednesday. It's been a while, Minyans, and it's about time we shake up the mojo. Wasabi!
At Hoofy's urging, I actually bought some inventory near the opening (semis and spy's) to honor a potential Snapper (at S&P support). I'm overall bearish but I figured the late day pressers needed to be tested (I've been there and it sucks). My initial stop levels were quite tight and, after the subsequent lift, I raised them to my cost basis. Yes, this is "after the fact" reporting but my intention is to communicate the mechanics of the swing. This merchandise (along with tertiary exposure in some energy issues) offsets some downside exposure in the financials. And, in the interest of full disclosure, I will punt my longs if my stops are elected.
A quick walk through the morning dew finds (marginally) negative breadth and pouty piggies. That's offset by some early jig in the semis (N's over S's?) and strength in storage. I'm also keeping an eye on the brokers (reaction), Microsoft (MSFT:NASD) (was dry yesterday), the dollar (off best levels but holding gains), bonds (green), the retailers (consumer proxy) and the homies (smoke city). Gold, meanwhile, acts like...gold.
NDX 1400 will offer the first technical test (we broke there yesterday) as will S&P 1070-1075 and (smile) Dow 10,000. Breadth has yet to confirm the upside (it's early) and lower highs remain (since early December). I've said it before and I'll say it again--the only thing that'll motivate the supply is lower prices. Stay on your toes.
Neal "the real deal" remains atop the leader board for our charity auction. So you know (and if you care), The Ruby Peck Foundation for Children's Education is registered with the State of New York as a 501c3 non-profit organization. I promise that it'll be a night to remember but, more importantly, it's for the kids. All the schnitzel, drinks, banter and kuon is icing on the cake.
As always, I hope this finds you well.
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 email@example.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.
Daily Recap Newsletter