Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Random Thoughts: Bullish Sentiment Dominates the Street


Yesterday's Investor's Intelligence sentiment survey (that showed 62% bulls) was the highest reading since December 2004.

  • Hear Ye, Hear Ye! NYC area Minyans---we're gonna host a special edition Minyan Happy Hour tomorrow (Friday) at 4:30 PM at the Bull & Bear (49th and Lexington ). MVHQ will be there in force and we invite ye faithful to join us for an end of week smile!

  • Glass Houses? Alan Greenspan spoke overnight and said that he doesn't expect a rapid decline in the dollar. Considering that the greenback lost 33% during the last five years of his tenure, we're unsure what he means by "rapid."

  • Psychology patience? Yesterday's Investor's Intelligence sentiment survey (that showed 62% bulls) was the highest reading since December 2004.

  • And before that? January 1987, before a 25% equity rally that preceded the crash.

  • Actions and Reactions. Yesterday we touched on the fact that Citigroup (C) pulled its buyback and JP Morgan (JPM) was posturing towards the same. They're not alone. While we're in the thick of earnings season, a measly $2.9 billion of new buybacks were announced between Friday and Wednesday.

  • On Tuesday we noodled the resonance of S&P 1523. It's still vibing, for what it's worth.

  • The obvious focus today will be on the financials after Bank of America (BAC) and Washington Mutual (WM) stunk up the overnight joint. Since the summer, we've seen rotation out of these names and into tech. Now, with eBay (EBAY) down 6% as well, the risk of an outright migration increases in kind.

  • Watch the beta brethren-particularly Research in Motion (RIMM), Apple (AAPL) and Yahoo (YHOO)-on the back of eBay. They're trading dry and will likely try give the Matador side a try.

  • Yep, the dollar is getting waxed again (DXY -70 bips). I'll continue to offer that this is a necessary element---but not a guarantor--of an asset class rally

  • What else trades dry? Energy and metals, following yesterday's well deserved rest.

  • Yes, we've still got serious negative gamma (in front of tomorrow's expiration) and, as such, there is two-sided swing risk. Trail your stops, respect the process and be the ball.

  • The best piece of advice I was ever given in business? Trust the people you work with.

  • The most beneficial "self-advice?" View obstacles as opportunities.

  • Note the action in the FXI, which is now off 5% and giving back all the gains since... yesterday? Hey, it's still almost a straight double since the August lows.

  • Y'all see where Uncle Freddie is trading?

  • Can Aunt Fannie be far behind?

  • Snapper is trying to climb through the window and trigger a negative gamma upside surprise (watch the financials and breadth for guidance).

  • Will he be successful? I'm not sure. But I will say that if he's not succesful soon, the other side of that gamma sword could come into play.

  • Hand up if you've got Hank on the brain into tomorrow's expiration!

  • Many thanks to our good friends at TD-Ameritrade for their excellent effort. What am I referrring to? Login to your Ameritrade account and you'll see!

  • Minyans who can't make it to the Bull & Bear tomorrow (49th and Lexington) should tune into Fox Business at 5:00 EST for a lil' surprise. OK, it's a big surprise.


< Previous
  • 1
Next >
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.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos