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Butterscotch?!?

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"Its gettin hot in here (so hot)
So take off all your clothes
I am gettin so hot,
I wanna take my clothes off
"

(Nelly)

The minxy fray is here and now as we dab the wetness from our brow. Yeah, it's a scorcher today in the city of critters and you can almost smell the butterscotch on the sidewalk. The saucy soiree is also starting to seep into the collective mindset as we edge into the busiest earnings week of the year. Hot? Bothered? Sticky like a bun? Shake it off, Minyans, and come with me as we chill in the 'Ville.

The first few (post expiration) hours are typically noisy as traders square their trading risk. Be that as it may--and it may be considerable--a few themes are starting to emerge in today's action. First and foremost is the N's over S's action that is dominating my (8) screens. The financials, trannies, retailers and cyclicals are draped in red while the NDX is green instead. The tenor is more Red Dye than Matador City, mind you, but the relative outperformance is notable.

My eyes are scampering between the bond market (firm), metals ('there'), Taser Int'l (TASR:NASD) (speculative proxy), oil (above $38/brl) and biotech (+1%). I've been nibblin' ever-so-gently on gamma as I continue to believe that there is a disconnect between what is and the perceived level of future movement. Yes, I have a downside bias but this opinion--and that's all it is--speaks more of the potential for an outsized move vs. relative expectation.

There's much to do and we should all spend some time identifying our objectives before the wild ride begins in earnest. The last thing you wanna do is step into the middle of a live game without a strategy or plan of action. That puts you on your heels and as we've learned, that's the last place you wanna be when trying to proactive position yourself. I know you know--but it never hurts to hear it again.

As always, I hope this finds you well.


R.P.
position in qqq, tasr

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.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

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