Frosty the Trader
Holy schnitz!! Look at that snow!!!
Oh the weather outside is frightful
But the tape is so delightful
And since we've no place to go
Let it snow! Let it snow! Let it snow!
I've never really thought about this before and I certainly don't mean any disrespect-but who the heck names their kid "Bing" anyway? Regardless, they're apropos lyrics as the white stuff is now dumping in Minyanville and our windows are a sea of white. Two things immediately come to mind: will this weather impact the holiday shopping season and, perhaps more importantly, will Hoofy spend his day cuddling with Daisy rather than bulling the tape? I'll tell ya, if Daisy was digging me, you could color me A.W.O.L!
It's relatively quiet on the research front with the exception of Merrill Lynch booting some of the brokers. The story of the morning, thus far, is probably the E.C.B (European Central Bank) 50 bip snip but, as we discussed yesterday, it was largely expected. Same stores are also trickling out and it seems like a mixed bag thus far but it is interesting to note that Circuit City said "sales of personal computers, which generated solid sales gains in the first two months of the quarter, slowed from their earlier pace during the month of November." Something to put on ya radar.
The tale of two tapes continues yesterday as the traction in the banks buoyed the S&P while the weakness in the semis weighed on the Nazz. Watch those two sectors today as respective tells and note that the SOX 330ish is October trendline support. The retailers will also be a focus as they're the best consumer sentiment proxy and that perception is huge as we edge through December. Peripheral tells will include Microsoft (initiated with a "1" at Lehman), IBM (on the back of last night's news), Bonds and the internals.
I continue to operate with both legs in my furry bear costume (50% conviction on the short side) and will be closely monitoring our technical levels. The storm will likely thin the trading ranks as players scoot out of the city so factor that into your trading mix as we find our way. It's a snowy Thursday in the city of critters and we've got an entire day to make some coin and have some smiles. Kick off those shoes, trade barefoot and double down on that hot cocoa-it's time to get busy.
See you after the opening.
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.
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