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Random Thoughts: Operation Long Side


Using price to your advantage.


Editor's Note: The following was posted in real time on our premium Buzz & Banter. It's being shared here for the benefit of the Minyanville community. See also Sixteen Candles.

Gate Sniffage! - 9:49 am

What is this, Bizarro World? The Raiders actually WIN (despite a Herculean effort to blow it in the waning seconds) and the screens are green. Go figure--or go to work, depending on your mindset. I'm doing both, with the following vibes top of the morning:

  • As Minyans know, I began operating from the long side a few weeks ago into the heat of the meat. It wasn't easy--and it still isn't--but I continue to trade around my exposure as a function of time and price.

  • In that vein, I made "enough sales so I could sleep" into last week's rally--selling the exposure I bought on dips into the rips--and I'm paring further risk into this morning's glory.

  • Just trading, Minyans, and doing so with great humility and defined risk. The greatest wisdom is knowing that you know very little.

  • With regards to my bovine posture in the energy space, I'll again reiterate that it's a "counter-trend" trade, which begs lightening into strength. While my sense is that crude could trade back to $90 with relatively little effort, I'll be feeding the ducks into it.

  • Sixteen more days until the election and--as discussed this morning--the risk of something profoundly world-altering has perhaps never been more acute. I, for one, will breathe a lot easier after the election passes and we can begin the process of "humble mea culpas."

  • Lemme get this out there in a timely fashion. Good luck this week, Mon Frere, and be a Minyan. No matter what happens, they can't take that away from you.

My name is Darryl, but you can call me D, HIT IT RUN! - 10:47 am

  • You think it's tricky to rock a rhyme that's right on time? Try rocking this market (while rocking a rhyme, if you're feeling saucy!).

  • Notable eyes of world? The pink piggies (BKX is a standout red head), the dollar is higher (not equity positive) and big beta is punky brewster (Google (GOOG), Research in Motion (RIMM) and Apple (AAPL) are lower).

  • What have I done? Sold much of my "upside try" (just trading as the OSX +16% off Thursday's low) and nibbled on some smallish SPY puts for a defined risk try and a trailing stop (initially set above today's range as they were bought with the S's up 27 handles).

  • The net/net is that, after sweating out a probey "low" (I know, remains to be seen), I'm back to pounding my glove as I "hit it to quit it," both ways with defined risk and steadfast discipline.

  • The biggest upside risk? Performance anxiety in the mutual fund space (after MUCH has been purged).

  • The biggest downside risk? Perhaps something unforeseen into the election and, of course, the lubrication (or lack thereof) in the credit markets.

  • I'll tell ya, there's nothing like old school Run-DMC. They were truly visionary and tremendously cool, as evidenced by how they stepped up when I was honored by UCP.

  • Almost 250,000 kids in Minyanland. Who said you can't dare to dream?

  • I'll be back, Yo--I hope this finds you with a smile on your puss and some jingle in your jeans.


Position in SPY

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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