Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Monday Morning Quarterback: Tis' the Night Before Christmas

By

Play smaller, stay tight and remember that discipline must always trump conviction.

PrintPRINT

Good morning and welcome back to the skeletal pack. Tis' the night before Christmas and all through the 'Ville, not a ticker is flicking as critters stand still. Yes, while we're in the last licks for these nutty ticks, there aren't many folks following today's fray. Heck, there's only three plus hours of action… can you really blame them?

We are, of course, here in the 'Ville, doing our part to ensure that ye faithful who've strayed into the fray are kept up with good company. Along those lines, and with some literary license, I'm gonna hop on to the Monday sleigh.

  • That Friday rally was impressive, right? It was nice to see some jig, particularly as we were sensing in our ample gut.

  • It's hard to argue with a 200-point gain, even if it did occur on expiration and took the S&P directly to the underbelly of our long-watched resistance.

  • What's more, the money center banks were noticeably absent from the party, which may have to do with the urge to purge these names from portfolios into year-end. Still, with the BKX sitting on multiyear lows, it's hard to put lipstick on those piggies based on what we've seen.

  • What can we read into the SIV Superfund close? Semantics, considering the Global Coordinated Liquidity Injection in recent weeks and the $500 billion since tossed in.

  • Everyone was saying LOOK AT THE VOLUME on Friday! Relax, Francis, it's expiration and activity should be at a much brisker pace. Even during the holiday.

  • Have you seen Hoofy and Boo's holiday list? It's pretty funny and most definitely worth the watch!

  • The most bearish thing on my screen? VXO 19.63. No fear at a time, I could argue, when fear should be priced into the marketplace.

  • I'm in all week (and doing FOX Happy Hour each day) but out next, visiting an old friend in Maui. I'll tell ya, I could use a few days away from this nuttiness!

  • With expiration influences done and doner-and everyone and their sister away-this week is a toss up in terms of the action. I can honestly see both sides-a rally directly to resistance (S&P 1490) followed by an outright fail or someone furiously pushing the "buy it now" button as they know how thin it is.

  • So, Merrill Lynch (MER) is selling its commercial finance unit to GE Capital (GE)? Yet another example of the transfer of wealth, albeit a stateside transaction.

  • With regard to the sales of stakes in Citigroup (C), Bear Stearns (BSC), Morgan Stanley (MS) and the like, I don't believe that sovereign funds "see something that we don't see." I believe that these transactions were affected from a position on "need" rather than a position of "want."

  • Play smaller, stay tight and remember that discipline must always trump conviction.


Happy holiday Minyans!

R.P.

< Previous
  • 1
Next >
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 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.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE