By Todd Harrison Sep 02, 2003 12:50 pm
A yacht? And you didn't invite me?!? FOKKER!
Hey fellas, have you heard the news?
You know that Annie's back in town?
It won't take long just watch and see
How the fellas lay their money down.
The slippery whip continues and the quiet storm has edged to session highs. With everyone staring at the same (S&P) chart, the initial burst through the (opening) high triggered "buy stops." Now the real games begin--and we're seeing the gorillas trying to press their upside bets.
They "feel" like they wanna put this level in their rear view mirror. The breadth is 2:1 positive and the brokers (which I'm keying on) have held a steady bid all day. Today's flies include the semis (taking a break) and rates (higher) but the bulls seem to have the mojo. It's early (there's a lot of trading left in the session) but it's shaping up as Hoofy's race to lose.
As a real-time trading example, I entered today's session with a couple of put positions in the financials. Rather than buying the underlying stock in those names, I've opted to buy some relatively cheap upsides (read: calls) in other brokerage stocks. It's a matter of preference, really, but with vols this cheap, I don't mind building some gamma. If they rally, I can always lay out some stock (read: short) on a ratio and play it that way.
Kevin "Pepe" Depew wrote an awesome piece this morning on the conflicting road signs. He hit the nail on the head regarding the different signals that are offered at any given juncture. I sometimes struggle with my commentary because there are so many short-term crosscurrents. I remain quite bearish overall but respect the near-term forces in play (read: I'm unsure). Truth be told, Boo is secretly wishing that S&P 1015 disappears already as that likely must confirm (on the upside) if there is to be a meaningful sell-off.
Other than that, it's pretty quiet as Fokker and I reacquaint ourselves. The young lad spent his holiday with Puffy on his yacht flashing his bling bling. Imagine that? P-Diddy and G-Fiddy flip-floppin' and servin'! Snaps to ya kid....but lose the velour sweatsuit! It's tacky!
I hope this finds you well.
position in spx
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