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Randoms: Trades vs. Investments

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Making bread while baking bread.

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Editor's Note: The following was posted in real time on our premium Buzz & Banter (click for a free trial). It's being shared here for the benefit of the Minyanville community. See also A Respite From Reality?


Gate Sniffage! - 10:00 am

  • Respecting the process, I made token sales across the board in my "into the close" added exposure from yesterday, with an eye towards a downside probe.



  • Why did I skip that last bullet? Because I picked up the pace of my sales as I watched General Electric (GE) bring bad things to life.

  • That included full "see ya's" in the SSO, Research in Motion (RIMM) and taking the BHP Billiton (BHP), Boeing (BA) and Intel (INTC) rentals to compact sizes.

  • I can always buy 'em back--that's the beauty of trading... we trade.

  • Other eyes? Goldman (GS) the redhead, Target (TGT), Home Depot (HD) and Lowe's (LOW) (simply red) and the semicaps (KLA-Tencor (KLAC), Applied Materials (AMAT), Novellus (NVLS)), which is enough for me to ready, fire and aim the remaining INTC from my pad (for now).

  • Why am I only allocating 25% of my long-term cash stash at S&P 600, if and when? Simple, I wanna leave room to add at S&P 500 and 400 should the dollar continue to rally. Do I think they get that low? Not all the way, no, but that's my nest egg and I'm handling it with care.

  • On the trading side? I'm more aggressive then GOB and his magic tricks, minus the gasoline in the eyes.

  • Back to the nest egg convo, I want the least yield possible on money I can't afford to lose.

  • I smell a test--perhaps a harsh one--WATCH GENERAL ELECTRIC (GE)--and tread carefully.

  • Gotta hop, Minyans--good luck and remember: If you're buying when they're selling, a cardboard box will be your dwelling. If you're selling when they're buying, you'll be smiling as they're crying.


The Spin Cycle! - 10:50 am

What am I doing as I listen to Big Ben, watch eight screens, make calls to investors, sniff at this this probe and think about what a badass Jack Bauer is?

Glad you asked! I am, in no particular order:

  • Wondering what the fallout from Eastern Europe will look like.

  • And how much exposure General Electric (GE) has to that region?

  • While remaining curious if that's the shoe?

  • Asking all Minyanville Underground Railroad Ambassadors who didn't receive weekend correspondence to let me know.

  • And asking all ye faithful who wanna get involved to do the same.

  • Trying to shake the notion that Ben Bernanke is a contrary indicator.

  • Watching Granny Goldman (GS) field supply.

  • Trying to determine if a trade to S&P 600--and closing your eyes and buying them there--is too easy?

  • Thinking back to 2006 when I was asked what concerned me most and replied that "the market is at all-time highs yet nobody really feels like we're at all-time highs."

  • Particularly as it relates to current levels and the attendant societal manifestation.

  • Understanding that this crisis is no longer financial or economic, but social.

  • Wondering why the dreaded donkeys are getting such big-time free agents.

  • Asking myself if I'm being too cute with my uber-tight risk profile?

  • Building a laundry list of stocks I wanna own when the time is right so I have a plan when I step on the field.


¡atención! - 11:30 am

Alright, so here's the situation, my parents went away on a week's vacation.

Oh, not that situation--this situation--due to the breadth and scope of the MUR, most of the emails sent with our initial correspondence got caught up in cyber-tape (or, at least that's what they want us to think!).

Suffice to say we're fixing the issue and our awesome Ambassadors will be contacted shortly. No need to ping if you haven't received information--but of course, you're welcome to ping if you wanna climb aboard The Critter Express.

In other news:

  • Using the whole fist there, Doc? The probe has arrived as Dr. Boo searches for our spleen and, while expected (following yesterday's mess), the question now becomes one of degree.

  • Note the double duopoly of Goldman (GS) and Google (GOOG). When pointing in the same direction, it's typically a good tell.

  • Seeing both sides, we needed to see a probe if Turnaround Tuesday was to live up to its reputation. Through that lens, this press could be considered constructive with the benefit of hindsight.

  • The closer we get to S&P 600, the more comfortable I'll be shifting my style from "hit it to quit it" to "scale into further exposure as a function of price."

  • Again, that may be too easy and nothing comes easy in this world.

  • Ben Bernanke just said we need to ensure that financial products have real purposes that benefits users. Is there any hintage in there regarding the treatment of CDS?

  • Dry powder will be your best friend when the time is right. And yes, that time is coming. Stay on your toes and stay positive. Profitability begins within.


Update on Aisle Five! - 11:49 am

After punting the lion's share of my upside exposure (bought on yesterday's close) into this morning's green seed, I'm nibblin' anew ever-so-gently into this probe lower. Just tradin', and doing so with defined risk.

Vehicles include BHP Billiton (BHP), SSO and Boeing (BA), thus far.

Just keepin' it real, Yo, and trying to shed some light into an extremely dark corner.

As always, I hope this finds you well.


R.P.

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Positions in BA, BHP, SSO

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.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

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