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The Rubber and the Road

By

Darn! That Hoofy's got a lotta gas in his tank!

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Good morning and welcome back to the Minxy motor speedway. The year end race has kicked into full gear and the critters are revved up and rarin' to go. Will Hoofy's green team ride the little engine that could all the way to the finish line or will Boo's crew once again send the bulls to the pits? It's another session of thrills and spills, sports fans, so strap yourself in and let's get rolling!

Barring an earth shattering come from behind win, the bears look poised to take the trading crown for a third year in a row. With that said, the bovine have closed the gap considerably since the mid-October time trials and will look to finish strong. There's plenty of fuel for thought this week as catalysts abound and, with a few scant weeks left in the year, time is of the essence. You can be sure that traders will be pushing the petal to the metal as they race for some last second performance.

There are a few ways to approach the speedy action and your method will depend largely on how you prefer to drive your portfolio. You can juice your engine with turbo-charged growth stocks and go for it-but if you do that, you're more likely to crash into one of the turns. Conversely, you can slow down, carefully study the track conditions and increase your odds of safely arriving at your destination-albeit at a slower pace.

About a month ago, we discussed a (humble) year-end thesis called "Razor Burn." In a nutshell, it called for a pullback-which we got- that would plant the seeds of hope (for the bears) and doubt (in the bulls). The second "leg" of the trade dictated a furious rip higher that sucked everyone into the market for the perceived year end party (in motion). If (big if) this thesis continues to unfold, we should be nearing a short-term top that sets the stage for a sobering holiday for Hoofy.

Of course, timing is everything in this business and being early (or late) can be a painful proposition. Traditionally, the news is always the most positive at trading tops (and dire during downside cusps) so keep your wits about you as we navigate through this financial traffic. Trying to make up for lost ground on a slippery track is a dangerous prospect-particularly when there are so many cars on the road. Define your tactical strategy before you merge into today's mix and, above all else, remember drive safely-you're only racing against yourself.

Good luck today.

R.P

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 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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