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Sounds of Blindness


Map out your strategy now so you're ready to act when the time comes!


Hello darkness my old friend
I've come to talk with you again
Because a vision softly creeping
Left its seeds while I was sleeping

(Paul Simon)

The afternoon fray is a crimson array that's molding the tape and shaping the clay. We've now tested S&P 1080 three times and each probe has chewed through an incremental layer of demand. While rays of hope remain (select financials, trannies), the internals have yet to give Snapper the wink. They're not conditional to an upside try (particularly if it is future lead) but it's certainly a duck that Hoofy wants to befriend.

With a bevy of stochastics twisting along the bottom and credit spreads remaining firm, the truth is that a sharp lift can occur at any time. We must balance that observation (or hope, or fear of missing, or...) against the reality that the market is a wounded animal. Levels have been broken, sentiment gauges remain sanguine and lotsa oscillators are far from traditional bungee levels.

My internal debate is centered around the question of our time horizon. I've been looking for a squash for many moons and, as such, can't be shocked when it finally arrives. But is the big picture front and center? Has the Fed finally run out of bullets? Have the structural imbalances now tipped the scales. In short, has perception become a nasty in-your-face reality?

The "hands over eyes" analysis offers plenty of cause for paws. Rallies have been meager and quiet (no volume), leadership has been queasy at best (semis), breadth continues to stank and, heck, nobody seems that worried. In the meantime, the "great weed out" continues to ding and sting as traders become casualties and profits become scarce.

While I can't tell you where the next 5% rests, I will hopefully add nuggets of value that assist you in finding your way. As such, I'll remind ye faithful that the ability not to trade will be as important as our trading ability going forward. Pick your spots, define your risk and never rationalize your positions. Emotion, above all else, remains the enemy of a lucid financial thought process.

Fare ye well into the bell.


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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

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.

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