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.

Clarity Disparity


Thursday's lows are NDX 1053 and S&P 860ish--that's next support!


Red and white, blue suede shoes
I'm Uncle Sam, how do you do?
Gimme five, I'm still alive
Ain't no luck, I've learned to duck

(Grateful Dead)

It's been a long time since the red spread but the Monday morning madness has (thus far) stuffed Snapper's fade trade. I warned Boo that it's early, though, and while I'm sure he's itchin' to strut, I reminded our fair bear that the onus remains on him to take the ball back from Hoofy. Let's take a look.

A quizzical Minyan asked me why I slipped my arm out of the imagery this morning if I'm bearish. I explained to my lil' buddy that, with the S&P down 20 and the Dow down a deuce, it was the disciplined thing to do. Yes, I'm aware that Boo's been playing salmon to a much larger stream but there's a difference between making "s)">scales" and hiding in the hills. We've been "trading around" the short side and, as such, we pared "some" puts into the initial melt.

As I turn to face the tape with BOTH legs still in my bear costume, the White House is on the tape saying they have "credible evidence" that Russia helped Iraq. While I'm far from a political analyst and I'm unsure of the depth of this news, Russian involvement is a new element that we must factor into the psychological process -- particularly after a massive rally that squeezed out most shorts.

Looking at today's tea leaves, the macro tells (dollar, crude) and the stateside reads (financials, semis, internals, retailers) are mirror images to last week's giddy up. Once again, and as I told Boo, a pullback was intuitive and inevitable -- now we must figure out if it's the beginning of something more ominous or a dip that should be bought. Group therapy anyone?

While my bearish inclinations remain intact, I want to see how the Minx acts when she gets to S&P 860ish. While this pullback was ANYTHING but an "easy" trade, the road ahead now becomes more difficult to navigate. Take a deep breath, understand that it's very hard and attempt to map out a strategy. If you're bullish, this should be viewed as an opportunity. If you're bearish, remember how you felt during Friday's choke hold and manicure your risk appropriately. Either way, remove emotion and think positive -- we've only just begun.

I hope this finds you well.

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