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A Ferklempt Kemp!

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How do I short duct tape?

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Nine mile skid on a ten mile ride
Hot as a pistol but cool inside
Cat on a tin roof, Dogs in a pile
Nothing left to do but smile, smile, smile


(Grateful Dead)

So, you wanna be a trader, eh? It's times like these--gut check times--that separate the critters from the fritters. It's surely not easy and it's certainly not fun but, if nothing else, emotional markets offer the most compelling trade opportunities. You just can't be too early...and you can't stay too late.

For those of you gigglin' along with the NDX 21-day gip (chart), the channel is relatively defined on both sides. Speaking of charts, Tony makes some astute observations regarding the current juncture and, I hope you know by now, I would never recommend something unless I felt it adds value. His latest observations are a must read for those dancing to this trippy music.

What am I thinking? Well, for one, the life of a zagger is often a lonely existence but I've learned that the toughest fades are always the best fades. It felt that way on the other side of BKX 800 and it's starting to feel that way now. Obviously, with so many balls in the air, it's impossible to know, for sure, how this will play out. That, my friends, is why I've chosen to define my risk via call options.

What vehicle am I using? I've got a smattering of index paper (out to march) and a few select (coiled) big cap tech names. Front month paper (February) is obviously cheaper and, as such, may be the proverbial "gun to your head" into next week's expiry. It's alright to "punt" on some of these instruments, but understand that, typically, the lion's share of those cheapies go out worthless.

As Inspector Kemp said in Young Frankenstein, "A riot is an ugly thing. And once you get it started, there's little chance of stopping it, short of bloodshed. But, before we go around killing people, we had better make damned sure of our evidence." The good inspector has a point--there's a rumor coming out almost every ten minutes and traders are shooting first. Take a deep breath, Mon Frere, and remove emotion from your mix--we'll get through this.

Good luck!





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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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