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The Hump Day Fray: Can the Contagion Coagulate?

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Cumulative imbalances persist.

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You Hear that Elizabeth? I'm Coming to Join you Honey!

Yesterday, I asked the question: "Is The Big One Coming?"

It spoke to the springing leaks in the financial dike, the bottom of the Washington gunpowder barrel, the VXO trading with a two-handle (well below previous fear fulcrums) and, perhaps most important, social mood and risk appetite.

Those last points will be put on parade as the September debt issuance comes to market. The dynamic and dichotomy remains in place-either credit has to improve or stocks will swoon.

We can't note that enough.

Few things in the market are ever black and white-or green and red, as the case may be-but this is seemingly one of them.

Risk management over reward chasing, discipline over conviction and debt reduction, as a function of choice rather than need.

Some Random Thoughts

  • How quickly can markets and moods shift? In a New York Minute, my friends, which seems particularly apropos right about now.

  • I digested some Campbell Soup (CPB) calls yesterday but the market was pretty thin. Ironic, given the "Chunky" persona of the brand and risky in front of today's earnings.

  • Pep told me the USO was on a TD-sequential "buy" late yesterday, which was fine by me.

  • Someone once told me to never let an opinion get in the way of making money.

  • My "opinion" is big picture deflation but, just as the short side seemed counter-intuitive during the ramp higher, I'm playing for a crude bounce as perception toggles towards reality.

  • Remember, 3:30 EST is the double-edged sword when redemptions kick in and buy-backs stop. Keep that in mind as we edge through the grind.

  • Check out the Utes-My Cousin Vinny can't be liking them right now.


Answers I Really Wanna Know…


R.P.

Positions in CPB, 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 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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