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Big Ben Chimes on Wall Street

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The Fed Chief offers his take on Mark-to-Market.

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Step inside, walk this way, you and me Ben, hey hey!

I return to my turret to find Big Ben on the little screen and his words all over my eight other screens. As I scrolled through his vibe, a few headlines stood out. Among them:

  • The Fed needs to buttress protection for money market funds (this is huge from a "social order" perspective).

  • He urges authority to take over the biggest financial firms (read: nationalization, temporary or otherwise).

  • Fed should play some role in broader risk management (HELLO McFly!--Where was this proactive initiative when the writing was on the wall?)

  • Fed will seek legislation 'on its own account'' (help me here--does this mean they, themselves, will push for legislation or they want legislation to enable 'its own account,' namely Fed bonds).

  • And finally, and perhaps most importantly, he said he wouldn't support suspending mark-to-market.


Even before he offered that last bullet (stamp a ticket, 9:14) I was going to reiterate my game plan, which was to scale out of my upside trading exposure into Thursday's House Panel Subcommittee meeting (while maintaining my S&P 600 bid for 25% of my nest egg).

My vehicles, as it stands and as I sit, includes the soon to be sold FAS (trading crack), the remainder of my General Electric (GE) calls and the other half of my SSO calls. I also have some Dryships (DRYS) and Yahoo (YHOO) but those are smallish, like the hands of a carnie.

Given his opinion on M2M (grr, thanks Ben), I'm sure alotta traders are thinking the same (sell, Mortimer, sell!). That should lend itself to a press lower out of the gate and we'll take a fresh, real-time look how that supply is digested on the Buzz.

One thing for certain, Minyans, something big is coming down the pipe. Take a deep breath and remain lucid--this is what we've trained for.

Good luck today.

R.P.

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Positions in FAS, GE, SSO, DRYS, YHOO

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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