Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

The Saddle Straddle


Breakfast at Tiffanys!


The hairy horserace continues as a combination of a benign Intel (INTC:Nasdaq) mid-quarter update, "fine" economic numbers, performance anxiety and negative gamma props up the pre-market futures. Fielding my morning calls, I haven't found anybody wanting to sell (much less short) this market and while that's understandable, I suppose, I wanted to pass along that factoid.

A few observations to chew on as we edge towards the opening. We know from our collective experiences that the news is always worst at trading bottoms and best at tradable tops. Obviously, it's much easier to see inflection points (March) with the benefit of hindsight but it's typically not as easy while wading in the emotional muck.

How parabolic can we go? Emotionally driven tapes fueled by structural exacerbation (negative gamma) is a dangerous environment. While everything in the world is pointing higher right now, remember from where we came and understand that the "bull case" isn't novel -- not with 57% bulls and 20% bears. Stay sharp, stay tight and stay true to your view. It promises to be a nutty nut today.

We discussed the blowoff scenario last week and the potential for a last gasp to S&P 1000. We're there now, and while it may very well be too "easy" a level, it's worth monitoring. The more important zone for the S's, in my view, is S&P 980 (if and when). For my part, I want to watch the opening and take my cue as a function of price.

Have an awesome day.

position in spx

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

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.

Featured Videos