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The Deep End of the Poole

By

Is today Flag Day?

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The opening bell tolls and another week of madness has officially begun. St. Louis Federal Reserve President William Poole hit the tape with cautionary comments on FNM and FRE saying "should either firm be rocked by a mistake or an unforecastable shock, in the absence of robust contingency arrangements, the result could be a crisis in U.S financial markets. That comment (among others) is spooking the financials and that leads us to a very important question--what kind of name is Poole, anyway?

My trading eyes are monitoring this complex as I consider them the most important group for the market. BKX 700ish is the February lows and the last technical stop (more or less) before the October lows come into focus. Away from that, the morning breadth is firmly stank across the board, the dollar continues to act heavy, oil is firm and our levels are in the process of being probed. The bulls are trying to toe the lines but, most likely, their shoulders are beginning to get a bit crowded.

For purposes of full disclosure, I added some defined risk downside puts (out to April) in a handful of financials on the opening. I typically hate shorting down (or buying up) but by I wanted to slowly scale back into some short side exposure and purchased partial positions. As an extension, I've dusted off the bear costume and Boo just brought it over to my desk with an "I told you so" look.

Don't be smug Boo--if you don't stay humble, the Minx will do it for you.

I'll be back.

position in fnm

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.

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