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Bialystock and Bonds

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Ducks and beavers?

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"How could this happen? I was so careful. I picked the wrong play, the wrong director, the wrong cast. Where did I go right?"

Max Bialystock, The Producers


The afternoon Minx continues to slink as the critters all stare awaiting a blink. The session (thus far) is uneventful and traders have spent the day absorbing last week's asset class shake-up. There is some action in the engine, however, and in the true Minyan spirit, we're gonna pop the hood and check the oil. There are always clues nestled in the muck--we've just gotta sift through the noise and keep our poise.

The standout movers are in the rate sensitive (and leveraged finance) issues. Earlier today on the Buzz, Fleck mentioned the drubbing in Novastar (NFI:NYSE), New Century (NCEN:NASD) Accredited Home (LEND:NASD) and Countrywide Financial (CFC:NYSE). They join the homies (ouch), brokers (soft) and piggies (wading) in the underperforming file. Hoofy would opine that the tape acts fine (pure rotation) and to be fair, the bull has a point. Still, and despite the impressive underlying bid, the fate of the tape rests in the collective ability to view higher rates (TNX) as a necessary--and digestible--evil.

Breadth in the old school remains a "flaggy" and lends to the "N's over S's" trade that remains in play. Gold has slipped to a two week low (filling a gap from March 22) as perception of a stronger U.S. economy is shifting money back into the dollar. Crude, for its part, is marginally lower but has bought itself some breathing room with last week's retreat. Until $40 re-emerges on the trading radar--a matter of time, me thinks--it'll be a nonevent for our time well spent.

The next few sessions are difficult to call as alotta traders have opted for a week off ahead of the meat of earnings season. I will pass along an observation (as always) but if today is any indication of what lies ahead, it'll be a long short week. Patience, my friends, as information overload is edging ever-so-closer. More importantly, remember that boredom is not an actionable catalyst regardless of your posture.

Congrats to Oregon Minyan Chuck Gall on correctly identifying today's trivia. Ray Kinsella, from Field of Dreams, attended UC-Berkley before moving to Iowa with his wife Anni. Chuck opted for a white long sleeve logo tee which is a bit surprising. In a land of ducks and beavers, you'd think he woulda gone with a critter! Wear it...and they will come!

I sincerely hope you're all kickin' some tail today and, more importantly, wearing a smile on your puss. Good luck into the close.

R.P.
position in qqq

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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