Do they hate me because I'm good looking? I don't get it!
Alright--I officially have smoke coming out of my ears now. Wednesday, we discussed the improbability of back to back Snappers. Yesterday, we discussed the improbability of back to back bear traps. Now, with yesterday's bear scare (up-down-up) fresh in our minds, is it too cute to expect a snapback rally now? Holy Toledo--my Minyans minyan's therapist's shrink needs some Xanax! Chop chop!
OK--whatda we got? WMT is down (retail tell), SYMC is the disaster du jour (Nazz sentiment), the cyclicals are starting to act heavy (BA, MMM, ect.), the breadth is still constructive (but starting to balance), crude reversed lower (again), the dollar is slippy, the overhead resistance remains (BKX, SPX, WMT, C) and virtually every order I saw this morning was either buying calls or selling puts (bearish). What's a Toddo to do?
Truth is, outside of my incremental adds (to the short side) this morning, I haven't overtraded today. I was surely schvitzing when we were tickling the upside and I'm conscious that the bulls still have plenty of time to giggle. Into this minispill, I've made a small put sale (discipline) to appease the trading gods and now I'll watch. I will say that this week has been one of the goofier roller coasters I've been on in a while. I was "smart" Monday and Wednesday and "dumb" Tuesday and Thursday--and freaky Friday still hasn't decided what she wants to do with me.
I was just on the phone with Snoop Tone--he was discussing the virtues of Woodrow Wilson for some reason--and I asked him what he thought of me slipping that leg back out of the bear costume. He made the (salient) point that there's a ton of complacency out there--something we saw via the flow this morning and reinforced by the action in the volatility measures (VIX, VXN). As such, I'm gonna count to ten and will look to potentially roll the stop down on that second appendage (discipline).
For all of you chart watchers, please note that the S&P 28-day trendline (the other one) is starting to come into play on the downside. There's actually two trendlines--this is the first--I just wanted to make sure it's on your radar, Radar.
In auction land, Geoff's still king at $15,500--with three hours to go! It's for the kids, Minyans, it's for the kids!
I'll be back.
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.
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.
Daily Recap Newsletter