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Blondes Have More Fun


There are innings that are easier than others, zones if you will, stretches where the eyes are fresh and the legs are strong.


"It has come to my attention that the maintenance staff is switching our toilet paper from Charmin... to generic. All those opposed to chafing, please say "Aye"

Elle Woods, Legally Blonde

Good morning and welcome back to the flickering pack. It's a dark, dreary, drizzlin' day as we ready for a fresh round of ticks profound. I've been scribing vibes for six years, awaking each day like a literary Graig Nettles, pounding my glove as financial news springs to life and is cast in the appropriate hue. There are innings that are easier than others, zones if you will, stretches where the eyes are fresh and the legs are strong. We mostly talk tape, other times life and still others, we dabble in arenas that aren't too popular. But we keep it real in the 'Ville. We'll always keep it real.

Last night, at our weekly Succofest, John, Scotto and I dined with an old friend from Geneva. The seasoned sage spoke of global perceptions of the American mix which, while anecdotal, served to solidify some of my stealth fears. We try not to delve into the political realm unless it relates to the tape but with the midterm elections approaching--and a mindful anniversary upon us--it's hard not to notice the jockeying in Washington. We eyed the dynamic a few years back as we cast of our vote and now, as we edge ahead, our chasm is color blind.

I touch on this topic as I cast an eye towards the collective psychology. With the averages eyeing multiyear--and, in some cases, all-time highs, I can't help but think of the seemingly fragile mindset of the masses juxtaposed against the brazen bravado offered in some circles. I had a similar vibe on May 11 when, while walking to the office, I pondered the notion of an "old fashioned economic boom" as Goldilocks was spotted right near the highs. And now, as I furiously pound the keyboard to get this to you in a timely manner, I've again heard that the economy is nothing but a G-thing.

I respect the tape. I "see" the acne in the brokers (above XBD 220), I "get" that year-end performance anxiety could conceivably create a long squeeze and I "know" that a weaker dollar could spur further asset class reflation. Indeed, while I don't trust this market or agree with the table-pounding bovine who emerge after each rally, I'm currently positioned "paired," long a slew of spring puts in the money center banks (watch BKX 114) and a spate of calls in the energy and metal space (as a ketchup hedge). In short, I am long gamma (with volatility so very cheap), I'll take what the tape gives me and I'll be quicker to pull the trigger on sales if and when the time comes. I'm not smart enough to know whether we'll bust through to new highs but I will offer that the turf will get tougher into S&P 1330 and NDX 1630.

We'll chew through the dew over on the Buzz but I wanted to share these broader thoughts as we ready to strap ourselves in. I will simply ask Minyans to "see" both sides of the trade and base decisions on merit rather than media. At the end of the day, you'll shoulder the load of your financial choices so be disciplined, be alert and, above all, be yourself sir. No matter what happens, they can't take that away from you.

Good luck today.

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Position in energy, metals, financials
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