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Daydreaming of a Sunny Market


Markets like these sorta make ya wish you were sitting at the Round Hill, eh?


Markets like these sorta make ya wish you were sitting at the Round Hill, eh? Roll out of bed at ten, homemade breakfast by the cabana pool, long walks on the white sandy beaches, a dip in the azure blue ocean and, above all else, NO SHARKS!

I would venture a guess that alotta fund managers are having similar sunshine daydreams (walking in the tall trees) but for those of us mixing it up, no such luck as we truck through the muck. Alas, I'm being a bit wordy while there's money to be made so lemme shake the sand from my shorts and focus my gaze anew.

  • I punted the remainder of my S&P puts into the opening abyss. I immediately felt pangs of premature evacuation as I watched Goldman slip a bit lower but Snapper arrived to give it a try.

  • Why flatten when S&P 1428 is the last stop before S&P 1375?

    • A sense that the bulls would give the upside a try.

    • Volatility levels are lofty. They have room to run but the smarter folks I speak with are selling volatility in here (long inventory and spreading risk against fat tail puts). Don't try this at home, Minyans, unless you're well versed in the risks.

  • "Sell the rumor, buy the news?" Backwards thinking works in a bear market.

As I type (as fast as I can), I see that the bulls have indeed put on a brave face. Market breadth is currently flat, mind you, but the financials are green as they held the second test of BKX 101.50.

This level is VERY important, friends, as a successful "hold" will spark talk of a double bottom in the banks. If we fail, flail and sail lower (through BKX 101.5), S&P 1375 becomes a higher probability bet.

As it stands, you can almost hear them chanting in from Matador City. No rally, no jobs. No rally, no jobs...


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

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