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Random Thoughts: The Good and the Bad of the Week's Final Hours

By

Hey, if there wasn't risk, it would be called "winning," not trading...

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  • What do you get when you cross George Burns and Morgan Freeman?

  • Is anyone else wiped? I mean, jeez, between the FOMC, brokerage earnings, macro migrations and red-eye dislocations, this week has been one nutty strut.

  • I, for one, am running on fumes (which is precisely what I wanna do in front of my annual, 24-hour diet) but, alas, there's no crying in baseball and there's no complaining in the 'Ville.

  • So, what gives into the final four (hours)? Some good, some bad and some unknowns. Here's the breakdown:

    • Good: NYSE internals, beta (RIMM, GOOG, AAPL, BIDU), Goldman (+1%), Oracle (+4%) and (+1.5%), perception of credit improvement.

    • Bad: Pink piggies (BKX is red), giveback in "fund" names (BX and FIG), homies.

    • Unknown: Expiration influences (pin risk), earnings (on tap), redemption window (starting to close), foreign appetite for dollar denominated assets.

  • For my part, while I'm doing a bit less, I'm skewed to the short side (GS and S&P my primary instruments). Setting stops removes emotion, we know, and I've got a tight leash on the former storm (particularly as it trades dry).

  • Hey, if there wasn't risk, it would be called "winning," not trading, so I'm taking the ticks in stride as we wade through the ride.

  • We've been discussing the transfer of wealth for quite some time. The emergence of Middle Eastern firms and funds shouldn't come as a shocker, nor should the fact that they've spent $64 billion this year (vs. $4.5 billion in 2004). And that's just the stuff we let them buy.

  • Answers I Really Wanna Know…

    • If you had to choose one color food to eat the rest of your life, what would it be? I know mine---but what's yours?

    • Does anyone else find it interesting that NYSE internals (2:1) are trumping Nazz internals (3:2)?

    • Is that a function of the positive fixed income skew?

    • Dude, the VXO is down 11%?

    • Because of its inverse relationship with liquidity, which is feverishly being pumped back into the system?

    • Or one of the greatest trading opportunities in recent memory?

    • If those aren't pillows, what the heck are they?

    • How could you pick anything other than brown as the color of choice for all food intake?

    • I mean, honestly, how can you go wrong with steak and chocolate?

    • Morgan (-1.7%), Wells (-1%), Lehman, Merrill and Fannie (all red) or Goldman (+1%)?

    • Is there an insider-selling window in Goldman anymore (that traditionally opened a few days after earnings)?

    • How can we not do SushiFriday today?

    • Y'all see that persistent bid in beta (BIDU, GOOG, APPL, EBAY)?

    • Thar she blows?


R.P.

Positions in GS, S&P

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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