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.

The Snow Plow

By

I can't seem to find traction on the icy slopes!

PrintPRINT

Going to plant a weeping willow
On the banks green edge it will grow grow grow


(The Grateful Dead)

I suppose it's fitting that the market is drifty during a snowy day in Minyanville and traders are chatting up our support levels. There are a few ways to approach this action and, at the risk of being redundant, at the risk of being redundant, it's totally dependant on your time horizon. Aggressive traders who are bullish may look to buy QQQ and SPY as we waffle around support and set "stops" underneath. By doing this, you're defining your risk while maintaining upside exposure. What is an appropriate stop level? That's dependent on your particular circumstances, cookie.

Conversely, if you're furry and bearish, you can add short exposure and key off our seminal "tells" in the financial and semiconductor space. If those sectors begin to get jiggy, you may want to take that signal and move to the sidelines OR go wider in your upside scales. There's no one answer as every trader has a unique style and individual methodology. For my part, I tend to incorporate "all of the above" as I trade around my short side thesis and dance with the Minx.

The N's over S's continues (NDX outperformance of S&P) the financial/retail duopoly continues to drip lower. Meanwhile, the SOX (semiconductors) hang tough after the 15% haircut (from the highs) and in front of Intel's mid-quarter update tonight. I've also begun to pick up chatter of alligator sightings (asset allocation) out of stocks into bonds and I wanted to pass it along but, other than that, the flow's quiet.

Taking a little snow day poll--what do you think was the funniest movie of all time? Send your responses to survey@minyanville.com and I'll let you know the results later today.

I hope this finds you well.

R.P

positions in qqq, spx, intc

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.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE