Boogie Down Productions
Hooray for Hollywood!
Spent a little time on the mountain
Spent a little time on the hill
Heard some say better run away
Others say you better stand still
The earlier lift was a green bovine gift that caused a few bears to uncomfortably shift. We were discussing a simplistic approach to today's trading over on the Buzz. Citigroup (C:NYSE) was in the eye of the terror-able storm and, as it was already 'the most important stock in the world,' we figured that it would lead by example. Sure 'nuff, it opened fifty cents lower, crawled up the hill (with alotta piggies on her back) and has led the Minx back to Matador City.
We've now arrived at a juncture where alotta traders will either fish or cut bait. S&P 1107, the vaunted 200-day moving average, is lurking directly above and calling the bulls out. While the action thus far is constructive, we should note that the oversold tape (if you can call it that) is becoming less so and complacency abounds. In fact, the mere fact that the VXO (volatility index) is down 3% on the heels of a terror warning is borderline scary.
Still, it won't matter until it does and the bears are back fighting the invisible hand. What do I mean? For the better part of '03, the structural metric provided ample liquidity and washed away the global worries. Hoofy came to depend on the intangible elements and old habits are hard to break. That indifference became clear during this most recent retest of the '04 lows when volatility and sentiment indices barely budged.
There's a fair amount on the trading radar so I will urge ye faithful to stay on top of their game. It is, after all, August and that means thin tapes and skeletal crews. Make smart decisions that'll allow you to sleep at night but, by all means, don't trade scared (the easiest way to lose money is when you're trading not to lose). And if you've got some free time on your hands, please give the Minyans in the Mountains a good, hard look (it's only 17 days away!). We always urge Minyans to work to live rather than living to work but if you can accomplish both at the same time.....wasabi!
I'll be traveling for the next few days and will be back by the opening on Thursday. Fare ye well, my friends, and please remember that the purpose of the journey is the journey itself.
May peace be with you.
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 firstname.lastname@example.org.
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