The Butter Knife
I hate gorillas!
Why do you build me up (build me up)
Just to let me down (let me down)
And mess me around
The morning fray is underway and WOW--what knockers! The initial supply pounded the street like a chicken cutlet but the strength of the financials soaked it up. Now, as the semis grasp for traction (SOX 448 is a two month uptrend), the brokers are swinging more than a Hedonism vacation. Quick--somebody call the Hair Club for Traders!
Despite the somewhat soggy semis, the tone of the tape hangs tough. Breadth has improved to 3:2 positive, the dollar is crawling back, crude is spilling hard and the master beta stocks (internets/biotechs) are trying to party like Prince (1999). Toss in tomorrow's expiration, the looming quarter-end, the upper end of the recent range (we're close) and, well, let's be careful out there, Sgt. Esterhaus!
A few quick thoughts before I grab the all-star guitar and head to Mr. Soros. There's a lot of commotion these days regarding culpability in the financial arena. To be sure, a lot of bad people did a lot of bad things and deserve everything they get. The court of public opinion is quite powerful, however, and we should be very careful when we cast our vote.
Do I think Dick Grasso should have been paid $140 million dollars? That number seems high--but in a world where LeBron James makes $90 million to wear Nikes, where do you draw the line? He might have been overpaid but he didn't set his salary or act in a manner inconsistent with the best efforts of his job. To be sure, the $5 million bonus for opening the exchange after 9/11 is ridiculous-- so many sacrificed so much more--but, at the same time, I don't believe the man should be vilified.
Anyway, that's just my two cents on the matter and I'm sure many Minyans will weigh in on this topic. In the meantime, as I write, the Minx is trying to poke through resistance and turn the machines back on. I'm hearing that there's one (or a few) large macro gorillas buying everything in sight in an attempt to break 'em out. That agenda wouldn't shock me (in front of expiration) but I obviously can't confirm that it's true.
That's about it, cookie, as I toss Fokker a cold-eze and head towards the door. There's only 25 hours left in the animated auction so size up that bid and let's get rockin'! I know that the ante is above many Minyan's means but no worries--we'll be hosting an array of sweepstakes and contests before the big day arrives!
As always, I hope this finds you well.
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.
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