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Freaky Friday Potpourri: Fried Green Toddo

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Not quite bullish on credit, but not exactly bearish, either.

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The final fifth of our freaky week has arrived and the song the swan sings with echo with laughter into the weekend. This particular five session set has been a wild ride, with an 1800 point DJIA spike stuffed into Turnaround Tuesday, triggering a 1600 point decline into yesterday's low before an 800 point upside reversal into the close.

Pause for effect. Think about those moves. These are bigger swings than a Hedonism Vacation!

For my part, yesterday summed up the stressful mess. After giving a series of interviews on Yahoo TV-touching on topics such as market volatility, hedge fund woes, the 2008 trading low and the role of the economy in the upcoming election-I stepped into my turret, faded (bought) into the abyss, did a Fox spot on my attraction to energy, made some sales (against my earlier purchases), rode out the closing hour on the small screen, jumped across town for an important meld, met President Fish and Grandpa Mangano for a quick schnitzel, capped off the night with a business dinner before face planting into my Tempur-Pedic pillow.

I don't share the details of my day as a function of narcissism-it's actually entirely more selfish than that. I am spent and spenter after yet another wild week and there is a slew of content-written and video-nestled above that sums up my current stance. I would expand upon it but it remains essentially the same:

Buying dips to sell rips, with the sense we've seen the 2008 trading low but respectful that the cancer is bigger than the patient (and will lead to a long hangover).

I've shaped my risk accordingly and enter today's fray with tired eyes and profound humility. Nobody is smarter than the market and we're all just pawns in her game. That's worth keeping in mind, particularly given that Mother Nature is in a mood after being messed with.


A few items of note on the all-important credit backbone.

Professor Bennet Sedacca offered this nugget on the real-time Buzz & Banter yesterday afternoon. For purposes of perspective, market levels were S&P 895, DJIA 8485 and NDX 1238.

Is the credit thaw starting?


  • Corporate deals are starting to get done.

  • Municipal deals are starting to get done.

  • Citigroup (C) is admitting to correct marks of its nuclear waste.

  • LIBOR starting to behave.

  • Mortgages starting to tighten.

  • How much more unwinding can there be?

  • While not bullish on credit, I wanted to make it known that I am significantly less bearish on credit.

    This is a large change for me, for what it's worth.

On the LIBOR front, the three-month cost of borrowing dollars in London fell overnight, establishing the first weekly low since July while the overnight rate slip 27 basis points to 1.67%, the lowest level since September 2004.

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Position in bhp, wft, eem, qld, fxi

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 todd@minyanville.com.

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.

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