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Frame Work!

By

I didn't see those trendlines either!

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So put me on a highway
And show me a sign
And take it to the limit
One more time


(The Eagles)


"Welcome back to the sizzling shack as the 'Ville winds down with the Critter pack. Hoofy's crew has big Boo blue as he sweats it out in the minxy stew. The lines are drawn for the technical scene as traders get set to root for their team. Be careful out there said Sammy with a smirk, "no matter your posture this market's berserk!" We're almost there said the sexy Daisy, stay focused, use stops, it's no time to get lazy!"

Much appreciated, Greg Collins, who took a stab at my morning grab in an effort to either help me out or mock my creative mojo. Greg, who has recently been promoted to Executive Editor of Minyanville (congrats brother-it's well deserved), has a love/hate relationship with my tendency to rhyme. He loves the fact that I'm inspired but hates the idea that it may dilute the meat and potatoes financial content. Balance, Mon Frere, as we pull the 'Ville on up the hill and try to add a little thrill!

There's lots going on in the hallowed halls so before we roll up our sleeves and tackle the ticks, I wanna walk through a quick state of the union. We'll be moving our office digs this weekend, starting later today and transitioning the technology on Monday. I don't sense any disruptions to the critter experience but given the shocka! we got on Tuesday, it can't hurt to put it out there. This will be the third office for these little critters and we're excited to have the capacity to build the vision and take this dream to the next level.

Next week, on the back of the move, we'll be making two announcements to ye faithful. The first will be the unveiling of the Minyans in the Mountains II registration for the Santa Barbara retreat on the weekend of August 18-21st. We're positioning this as the Sundance of Finance and intend to follow the footsteps of last year's fantastic Festivus. I'm truly humbled as I read through the list of those attending and I believe you'll agree that it'll be the truest embodiment of the Minyanville Mission to date.

The other major announcement will be the addition of a new Managing Editor and we're very excited to welcome him (back) to our family. I will simply say that he has the respect of the professors and is one the best "thinkers" that I know. As President Fish maps out the critter facelift-we're redesigning the 'Ville to make it a financial destination rather than an appendage-Collins and this gentleman will structure the flow and flavor of the content to maximize the Minyan experience. We welcome your ideas, thoughts, vibes, likes, dislikes and constructive criticism as we collectively take this next step of our journey.

Turning my attention to the tape, I've included two charts that speak for themselves. You can add the NDX to that mix as all three sisters are facing the same technical situation. In the interest of full disclosure, I didn't spy these set-ups when I got stopped out of my latest effort as my focus was fixed on the perfect storm (Dow 10,400, S&P 1180 and NDX 1500). I'm unsure if these resistance points will stuff the Matador Crowd but the combination of toppy tech stochastics and the potential that expiration was a "mechanical bull" raises an eyebrow. And of course, as the Horse maps out, there are structural pressures in play that will likely trump chart work.

A few things to note as we ready for the Freak that is Friday. Index magnets will be removed on the opening as the May paper settles and simmers. Individual stocks will still have pin risk into the closing bell as a function of open interest relative to average daily volume. If, in fact, much of the upside pull was a function of expiration (short gamma through S&P strikes), today could be a soft chop into the holiday stretch. In that vein, please remember that the next few weeks will be thin as traders hit the beach on either side of Memorial Day. That opens the door for outsized volatility and we should factor that into our risk profiles.

It's been a tough week on a few fronts but it's all part of the broader journey. There are bound to be peaks and valleys in any experience but the goal is to enjoy the scenery as we find our way. If we're lucky, we also get to share the trip with people we care for and that, in a nutshell, has been Minyanville's greatest gift to me. From MVHQ to our professors around the world to the screen sitting in front of you, thank you all for all you do and helping us build the Critter Zoo.

Good luck today.



All charts courtesy of stockcharts.com



R.P.

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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