Fast Times in Minyanville
S&P 885 is the level on everyone's radar!
Minyanville is an educational community and, as such, the critters will take an occasional field trip. This morning, while Fokker and I slaved away in front of the screens, the Menagerie spent some time with the gang from Ridgemont High. Over a plateful of pizza (on our time), the collection of characters talked business and babes. Here's what they had to say.
Jeff Spicoli: Duuuuuude, that's the cooooolest dye, Boo! You gotta stop by my van when we're done for some tasty...
Daisy: That's just about enough of that Jeffrey, we're not here to party and play -- we're here to learn. Do you see what's going on in the markets today? Maybe if you paid attention to world events you wouldn't be such a slacker!
Boo: Easy cowgirl, he's just goin' with the flow. We all see what's going on: tech is trading lower on reality while the macro rotation is holding up the S&P. It's a tug of war for sure, but something is gonna give soon. It all depends on how deep the allocation rotation pockets are and how traders wanna be positioned for the weekend. (turning to look at the sexy brunette) Hey Linda, wanna go for a swim after school?
Mike Damone: (kicking the bear under the table) Boo, listen to me. One, you never want to let on how much you like a girl. "Oh, Linda, Hi." Two, you always call the shots. "Kiss me. You won't regret it." Now three, act like wherever you are, that's the place to be. "Isn't this great?" Four, when ordering food, you find out what she wants, then order for the both of you. It's a classy move. "Now, the lady will have the linguini with white clam sauce and a Coke with no ice." And five, now this is the most important, Boo. When it comes down to making out, whenever possible, put on side one of Led Zeppelin IV.
Linda: That's so juvenile! I sure hope you're better at trading than you are at womanizing. You're all children!
Hoofy: Pay them no mind, Linda. Boo's upset because he's been fighting this rally for a long time and he's not reading the tea leaves. I mean, look at today: The S&P won't break unless the dollar loses ground or bonds catch a bid. It's been going on for a few weeks and he's not a believer. I keep telling him that he doesn't need to believe it -- he's just gotta respect it. If he doesn't, he'll spend his days ing)">schvitzing and will get killed on his shorts.
Boo: Well which is it, Hoofy? Am I gonna schvitz or is she gonna kill us?
Jeff Spicoli: Man, bears on 'ludes should not trade! Bro, come with me. All we need are some tasty waves, a cool buzz and we'll be fine.
Mike Damone: Leave the bear alone, Spicolli, he's had a rough ride and the last thing he needs is to get mixed up with you. I'm tellin' ya, Boo, forget about that. It's all about attitude. The attitude dictates that you don't care whether the Minx comes, goes, stays, prays or trades. I mean, whatever happens, your toes gotta keep tappin' and you've always gotta think positive. Now, when you got that, then you have the attitude.
Hoofy: Hey, while you guys are talking psychological gibberish, have you seen what's going on with the tape? The bulls toed the line right above Wednesday's gap (thus far) and it's squeezing some more shorts out. Yes, I see that the breadth has leveled off, but it's early yet. Watch those banks for leadership (either way) and pay close attention to the macro tells -- thus far they're lined up. The dollar is up while crude, bonds and gold are down. That's the ticket.
Daisy: What do you think Mr. Hand?
Mr. Hand: Am I hallucinating here? You guys are too focused on what the tape is doing when you should be thinking about what YOUR needs are and the time horizon in which you're operating. The tick-by-tick action is crazy and too many hedgies are reacting to the last headline. If you try to make sense of it all, you'll drive yourself batty. Identify a time frame, allow for a margin for error and, if unsure, trade a little in between. There's event-risk both ways this weekend so make sure you incorporate that into your weekend profile!
With that, Boo jumped out of his seat, grabbed Linda's hand and led her out the door. "You're my lucky girl, Linda, and you're gonna turn my mojo around. Let's go grab some sushi with Toddo and make some trades." The rest of the characters looked at each other in amazement -- she actually left with him! -- but they decided to let it go. Everyone needs a break once and Boo's been struggling. He'd better pay attention to his job, though, the Minx was sure to get active as she eyes the weekend.
As always, I hope this finds you 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.
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