The Tiger and the Tail
This tiger has a tail!
My grandma and your grandma
Sitting by the fire
Said my grandma to your grandma,
"Gonna get your tail on fire."
The Minyanville digs are surrounded by sirens as two make-shift grenades exploded at the British Consulate across the street. Nobody was hurt, thankfully, although some latent memories were stirred to start the day. It also hampered our ability to arrive on time (likely excuse!) so I'm gonna roll up my sleeves, cut to the chase and unleash the critters for their day in the fray.
I walked into work today with two legs in my metaphorical bear costume (50% conviction on the short side). I got dressed late yesterday despite early vibes that a rally was afoot. Indeed, after openly opining that I "liked the tape for the day and felt we had room to DJIA 10,400," I flipped the switch and started looking for a Red Dye try. It was a bit early (the internals never blinked during the midday probe) but the risk was defined at the time and remains so today.
What was I looking at? The financials (XBD and BKX), which were both tickling their 200-day, along with the nosty set-up in the Dow and looming levels for the NDX. I noted late yesterday that if the structural metric has again stepped up-Brazil was +3% and the dollar was heavy-reflation would trump the charts in the near-term nuance. That remains to be seen although it would also require that General Motors (GM) stays on the back burner for a little bit.
While I dance through the trance on today's Buzz, most investors will be primping and posturing for tomorrow's breakfast with Beeks. With clowns to the left of us and jokers to the right, we'll be walking the tightrope with each and every economic report. Any signs of input inflation or economic slowdown will be embraced by the bears on their way to the Stag party. But if Goldilocks can get her groove on, Boo will lose another crutch on his short-side touch.
I've been playing ketchup all morning so please excuse the terse verse as we edge into the Thursday fray. I know alotta Minyans are frustrated (as am I at times) but we gotta remember that it's par for the course. Our goal should be to smooth the process-don't get too "high" when we win or "low" when we lose-and always remember that each day represents a fresh opportunity. And enjoy the journey Minyans, for by the time you reach the destination, our ride will already be over.
Good luck today.
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 email@example.com.
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