Make me proud!
Hey, comin' out around the world
Be ready for a brand new beat
Oh, summer's here and the time is right
Oh, for dancin' in the streets
(Martha & the Vandellas)
The pigpen, er, play pen continues as the Minx nudges her way through S&P 935 and the bulls are giggling anew. We've been discussing the" blow off" potential and I suppose this action shouldn't come as a surprise. The S&P, BKX, NDX have all "broken out") and the upside vacuum is sucking in critters of all ages, shapes and sizes. As painful a proposition this is for Boo, I explained to our furry friend that he WANTS this... he NEEDS this and he should CRAVE this IF the rollover thesis is to come to fruition.
Why? Because, when trading, our goal is to identify disconnects and advantageous risk/reward situations. Clearly, the higher lows/higher highs we've witnessed in pickasector has been a bullish tell but, as we said, that was then and this is now. With the upside capitulation in motion, the bulls comfy, the stochastics pretzel twisting, vols coiling and the dollar melty, it's starting to get tingly the other way.
I've been eyeballing NDX 1200ish and S&P 950ish as attainable blowoff levels but, as you know, I've been scaling into June puts nonetheless. I am mentally preparing for a "bullish" Fed (whatever that is) and a good Cisco (CSCO:Nasdaq) (no edge) and, if they occur, I'll have powder ready to deploy. In other words, I have a strategy mapped out for any/all of the above scenarios.
I won't ever tell you what will happen (not my style) but I'll always put it out there with the best intentions. This is admittedly the chilliest stretch that I can remember, but honesty and dignity aren't a function of profitability. I don't gloat when I nail 'em and I won't sulk when I don't. All we can do is our very best, my friends, and let the chips fall where they may.
Good luck -- and kick some arse!
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.
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.
Daily Recap Newsletter