Random Thoughts: Why Bank Shares Are Ripping
Chatter of a structural shift abounds.
For my part, after taking a stab at some Research In Motion puts this morning (which will be stopped out above $41.50), I added some Ultra S&P 500 (SSO) (on the first pullback, with a trailing stop) as an upside hedge/pseudo-spec and an eye towards S&P 800. We vibed the "S's over N's" out of the gate and that's how I'm playing, at least for the day.
Keep in mind that tomorrow is Turnaround Tuesday and even if this is an uptrend (within a broader, secular bear market), we could well see a reversal tomorrow. Where you stand is a function of where you sit. For some, the near-term nuts in guts is where it's at. For others with a longer-term lens, moves (counter to your positioning) should be used to add exposure.
For both, I would again put Friday's expiration on your radar, for if there is something up the government's sleeve, it wouldn't shock me to see them unleash it into the option expiry.
Fare ye well, Minyans, and best of luck as we truck through the muck.
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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