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.
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.