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.

Random Thoughts: The Market Wants to Rally; Will the Banks Let Them?


Piggies are sore for traders galore.


Editor's Note: The following was posted in real time on our premium Buzz & Banter (click for a free trial). It's being shared here for the benefit of the Minyanville community. See also Answers I Really Wanna Know: Which Trading Team is Off-Sides?

Gate Sniffage - 10:20 am

After almost two decades on the Street (eat your heart out Benjamin Button, I'm still getting younger on Facebook), I've yet to fully reconcile the notion of meetings during the trading day.

It's not so much the early breakfasts--particularly given this morning's stellar company--but the intraday melds while the ticks are flickering and critters bickering. Along those lines, lemme communicate that I've got some crosstown traffic at 11:00 as we continue to build upon the vision of the 'Ville.

Some top-line vibes as we crank up Turnaround Tuesday:

Snow Globe! - 1:00 pm

It's a wet and woolly day in Gotham as I return from the west coast of Manhattan and strap myself into Turnaround Tuesday. In this economy, I know better than to complain about being busy but this balance thing sure is hard to master. Taking a deep breath of perspective, here are some top-of-mind vibes:

  • Pepe posited earlier that "Hyperinflation is the only economic condition wherein having money is simultaneously the greatest and the least of your concerns." Well said, Mon Frere.

  • The single biggest fly in today's upside try--and yes, they feel like they want to rally--are the financials. "As go the piggies, so goes the poke" has a hard earned and well respected reputation in the 'Ville and it must remain on our radar. And yes, I say that with a handful of exposure in that complex in tow.

  • In that vein, please keep an eye on the downside gap in Wells Fargo (WFC), which "works" to $16-ish should it begin to fill. Technical analysis is but one of four primary metrics--and we could argue that in our current world, our metric mix has morphed into a game of chicken between government intervention and cumulative imbalances--but it's worth tossing on ye radar.

  • For my part, I'll likely set my WFC stop on the other side of $18 should the horses drag that carriage lower. On Mother Morgan (MS), I'm using a break of acne support ($20) as my rip cord. For the call options otherwise known as Citi (C) and Bank of America (BAC)? Well, they're call options and a pure trade, not a long-term investment, and I'm trading around them as such.

  • Yahoo (YHOO) and energy? Pure trading vehicles, although I plan to keep a snivlet of the former on my sheets with an eye towards media convergence.

  • The net/net? Discipline over conviction. I'm NOT in "scale down and get bigger" mode at these levels, I've gotta "make it to take it" mindset, albeit with a bullish skew. Should we slip and slide towards S&P 600, you'll see that stylistic approach shift in kind.

  • Good traders know how to make money. Great traders know how to take a loss.

  • You say it's your birthday? What's your birthday say about you?

  • Lotsa chatta on gold today. So you know and so it's said, I'm not currently involved. I like to sell hope and buy despair, which means buying panic and selling manic. I understand the easy money is made between the twenties--the red zone, or cusps, is always the toughest place to score--but that's the way I roll. My intention is to accumulate a position with a $6-handle, which is entirely different than asserting that it'll get there.

  • Lemme get this out there, my friends. I'm on deadline for tomorrow's syndicated vibe, have further afternoon melds and tonight, well, I'm taking out my moms for her birthday. My the time we belly up for some sushi and a saketini, I plan to have a clear head so I can focus on the important stuff.

  • As always, I hope this finds you well.


< Previous
  • 1
Next >
Position in WFC, MS, C, BAC, YHOO, USO

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

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.

Featured Videos