The Flurry Hurry
I'll always keep ya honest!
The opening flurry has Hoofy and Boo glaring each other down. But thus far, neither critter has emerged with a clear edge. The bulls will point to the constructive breadth and the underlying bid (particularly to tech). The bears, meanwhile, are chatting up the relative lethargy in the financials and the macro tells (marginally unfriendly).
With April index paper "coming off" this morning, attention will now turn to individual equities which are set to expire on the close. We've spoken about pin risk (Microsoft (MSFT:Nasdaq) 25, etc.) and that'll color the price action throughout the day. Keep in mind also, please, that the Philly Fed is coming out at noon and, after that abysmal Empire Manufacturing number the other day, expectations have been ratcheted down.
The N's over S's theme still seems to be in motion and I've still got the QQQ gamma trade on vs. a smattering of cheap puts. As discussed, I want to "trade around" this paper because I feel it's cheap and offers a nice risk reward. Understand, please, that I'm not recommending this for you -- options are very risky -- I'm simply sharing my process with an educational intent.
The opening felt a bit "pressy" and that condition is being alleviated now. Watch the dollar for signs of slippage OR traction, respect the breadth in the S&P (2:1 positive) and think positive -- it's gonna be a good day.
Fare ye well
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