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Wishbone

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Will the N's pull down the S's? Or will the macro influences pull up the S's, and hence the N's?

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The Minx springs to life and, after digesting a disturbing blurb on the war front, has settled into her daily dance. The single biggest theme that's emerged is the relative outperformance of the S&P over the NDX (S's over N's). The disparity was pronounced from the word go as software (PeopleSoft (PSFT:Nasdaq)), semis (STMicroelectronics (STM:NYSE)) and storage (QLogic (QLGC:Nasdaq)) led the techs lower while the financials (banks and brokers) set the tone for the old school.

A quick smell of the morning breadth confirms what our eyes are seeing. The NYSE has sprinted to a 3:2 positive posture while their four-letter cousins are relatively flat. How am I incorporating that into my stylistic approach? Throughout the day, if I want to set up some gamma, I may buy SPY (on a ratio) against my QQQ puts. You typically want to trade "apples to apples" on these types of strategies but sometimes you can audible if you sense a relative disconnect. Just an FYI.

Reports on MSNBC indicate that cyanide and mustard agents have been found in the Euphrates river and that's weighing on the collective psychology (for now). There's a lot of noise out there, Minyans, but keep an eye on the dollar and bonds -- they've managed to hold their bid (thus far) and that may mean that the allocation rotation is still in play.

Also, please note the downside gaps (from Wednesday's open) as they're within spittin' distance.

I've gotta hop and juggle the jiggles -- I'll be back.

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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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