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Stevie's Ray

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May peace be with you!

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Money's tight, nothin' free,
Won't somebody come and rescue me?
I am stranded, caught in the crossfire
Stranded, caught in the crossfire.


(Stevie Ray Vaughan)


The afternoon brawl is scrawled on the wall as the bears dig in deep and the bulls all stand tall. It's been a Sammy slither for the better part of the session as the derivative types toss merchandise to and fro. We've talked about the insane levels of negative gamma in the marketplace (English: traders get shorter higher and longer lower) and, thus far, it's been a push. That is music to the dealer ears as the dripping sound you hear is the premium slowly melting in the Minxy heat.

Is this the beginning of the most telegraphed bounce in recent memory? Perception is reality, I suppose, and if enough folks put their money where their mouth is, it could last a bit. Still, I would remind the A.D.D types among us (present company included) that A) a lot of technical damage has been done B) Carrie and Fanny are BFF and C) geopolitical uncertainty looms (and it's not going to abate). Perhaps that's what walls of worry are made of but it's also what triggers trap doors.

Applied Materials (AMAT:NASD) and Hewlett Packard (HPQ:NYSE) will headline tonight's news items and will likely color tomorrow's tech action. Still, I would rate the structural and psychology metrics 1-2 in terms of importance and, unfortunately, they're also the most abstract. I have little doubt how it'll shake out in the broader scope but in terms of the day to day, it's jittery, emotional and, thus, difficult to measure. As it stands, the lightest volume day of the year is simply lifting us back to established resistance channels.

I'm gonna hop such that I can get this out to ye faithful before thy closing bell tolls. Make decisions consistent with your unique risk parameters, define your time horizon and, above all else, don't bite off more than you can chew. The only way you can work to live is if you're not thinking about work around the clock. Balance, Mon Frere, will lead to better and more profitable decisions in more ways than one.

Have a peaceful night.

R.P.
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No positions in stocks mentioned.

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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