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.

Hot Potato!


Why do the retailers act so heavy?


How do rumors get started?
They're started by the jealous people and
They get mad about somthin' they had
And somebody else is holdin'

(Timex Social Club)

The tug-o-war continues as the reactive traders bull/sell as a function of the latest blurb. There were buyers when the durable goods number was released (and missile destruction rumors started), sellers when the new home sales number came out (and the missile destruction rumor was refuted), and now there are buyers on the terror alert status being lowered. It's pretty bipolar and if you're trading as a function of the last blurb, you're likely whipped cream by now!

Rather than chase the tale of the tape, let's take a deep breath and look at what is. Oil continues it's upward ascent and that must be noted (on a macro level). The breadth is slowly improving on the NYSE (8:5 positive) while languishing on the Nazz (almost even). That, in addition to the bank traction, portends an S's over N's tape and that should be factored into our stylistic approach. Finally, the retailers are notable by their absence of participation. The terror alert issue does matter, at some level, but that's a function of psychology and not necessarily a tangible input. See the subtle difference?

I've got five day gips (charts) up on the S&P and NDX and there's a cute little triangle forming in the S&P. I see the"disbelief" in the market and that's bullish on the margin--but while the tape may lift in the near-term, I'm still in the camp that higher prices are fadable. Today's business? Not sure--but that's my honest read (as always). One thing to remember as we find our way--the masses are confused and reactive. As such, they'll likely turn buyers higher and seller lower.

I'm picking gingerly at some S&P puts, fyi...just trading. I'll be back.
< Previous
  • 1
Next >
position in s&p

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

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.

Featured Videos