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A Flurry in a Hurry!

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With the G20 and FASB in progress, the news is piling on.

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"Oh to live on Sugar Mountain . With the barkers and the colored balloons." –Neil Young

We knew it was coming, right? At the beginning of the week, we mapped numerous catalysts that were quickly approaching as we weighed the fray that is this world. With quarter-end behind us, the G20 in progress and bean counters currently debating the fate of the market, one can't help but feel like a moth in a light bulb factory.

Take a deep breath and compartmentalize the process for if you try to swallow the entire nut whole, it'll overwhelm you. Along those lines, in the interest of time management and creative latitude, we're gonna break into a bullet format:

  • The Financial Accounting Standards Board (FASB) meeting began at 8:00 AM EST this morning and relaxation of the mark-to-market regulations that have been in the crosshairs of bulls and bears are front and center on the docket.

  • As I listen to the meeting, the words "back peddling" keep popping into my head. The bulls will be angry the rules weren't changed earlier (or implemented in the first place) and the bears will be peeved by the lack of transparency, which they'll argue got us into this mess in the first place.

  • In other news, I'm petitioning that my scale relaxes the methodology used to calculate my weight. I know it says I weigh 200 lbs but if I'm inactive, as many of these financial instruments are, why can't I weigh 185 lbs?

  • If you haven't seen Hoofy and Boo's take on AIG (AIG), you're missing one of the better sets from our Emmy Award winning Critters.

  • They're fueling their birds! With all eyes on London, Washington and Wall Street, could something from left field-or, perhaps, North Korea-be a catalyst that nobody sees coming?

  • One situation? Perhaps it's an isolated incident. Two? Maybe it's a coincidence. Three? Suggests a trend. When you get to six-be them overtimes or currency swaps-it's time to sit up and take notice.

  • A Minyan asked me if my S&P 1000 vibe (offered a wee bit early) was still in play. My response won't thrill ye faithful but it's most certainly honest. "I'm allowing for that in my stylistic approach but I'm certainly not betting the farm."

  • Why? I'll go back to the apt analogy that we can drive from New York to California at night as long as our headlights illuminate the 200 feet in front of us.

  • Given my belief that this lift is cyclical, not secular (read: bear market rally), I'm focusing on the journey rather than the destination and taking each trade as it comes.

  • You can learn a lot just by watching. Yesterday it was the dry action in Research in Motion (RIMM) in the face of fugly futures. Today, eye spy Amazon (AMZN), which is flat in the face of early jig. That, to me, smells like supply is looming for the Internet retailer.

  • Please toss Altera (ALTR) and Xilinx (XLNX)--also known as the PLD's--on the sniff list of stocks that didn't find their pre-market footing.

  • If you ask me my gut, I'll tell you higher. If you ask me my positioning, I'll share that I'm flattish after booking some trades yesterday. It's not an approach for everyone, but I continue to operate through the lens of risk management over reward chasing.

  • My brother Adam, who is the EMS Lieutenant at Chestnut Ridge Volunteer Fire Company, asked if I could inform ye faithful of their charitable push for a new ambulance. As he selflessly risks his life to help others, I will most certainly oblige him.

  • Yesterday I just walked up behind Sudeer, our new in-house I.T., and gave him a massively loud CLAW to his belly. The poor guy jumped ten feet. NOW, he's officially part of the family.

  • The reaction by the market to a General Motors (GM) toe tag will speak volumes through the lens of "reaction to news being more important than the news itself."


And finally, gratitude is latitude...

Not to get soft on y'all, but I would be remiss if I didn't take a moment to express our sincere appreciation to the Minyans in our midst, the global community that spans 122 countries and all fifty states. These are tough times--there is no putting lipstick on that pig--and we continue to fight the good fight due in large part to the belief system of ye faithful. We often say that a dream is only as powerful as those who believe in it. Without you, I'm still that guy sitting in the corner playing with his dolls.

I believe, I always have, that Minyanville is Disneyesque, a global franchise that affects positive change through financial understanding from the ABC's to the 401(k)'s. We're surely not there yet--in fact, I would argue we've only just begun--and it takes moxie, muscle, pure will and tenacity to penetrate the mainstream mindset and challenge conventional wisdom. It's a labor of love but make no mistake, it's a labor.

This community makes it a pleasure to arrive at MVHQ each day and for that, and on behalf of our team, I simply wanted to say thanks.

Good luck today.

R.P.



In memory of our fallen friend and trusted colleague, Bennet Sedacca, 100% of the donations made to the RP Foundation through April will be channeled to philanthropic endeavors consistent with the RP mission, working closely with the Sedacca clan in the distribution of those funds. We thank you kindly for your support as we strive to effect positive change in the lives of children.

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No positions in stocks mentioned.

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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