Eye on the Close: Boo Takes A Bow
Deep breaths as we bring it home, Minyans, and stay on your toes.
Editor's Note: The following content appeared on the Buzz & Banter between 3:00 and 4:00 PM. It is being reposted here for the benefit of the Minyanville community...
It's Boo's turn to turn the screws as he's got it made, got it made, got it made on the downside. While Snapper surely tried (targeting the highest betas in the bunch), market internals never gave him the wink and that, as much as anything, was cause for pause.
Now granted, Hammering Hank spoke twice today and as we've learned, he's a frisky critter when cornered. Therein lies our task at hand--appreciating the coordinated agenda versus respecting the fact that nobody is bigger than the market. We've been eyeing this for months and recognize the stakes. The onus remains on us to continue to weight that fray.
Hey, it's either that or move to Costa Rica and open a taco stand (which, to be honest, doesn't sound so bad!).
For my part, I continue to have some stashed away December (S&P downside) paper along with a snivlet of front-month left-for-dead stuff which suddenly has a pulse. One of the toughest tricks when trading options is the day's preceding expiration when you've gotta go fish or cut bait. I'm fishing, so you know, but I've got the scissors close at hand.
S&P 1523 continues to resonate for some reason (trendline) so I figured I'll toss it out there while I furiously pound my keyboard. I'm not sure if it's near-term business but gun to head, I would offer it is. The catalyst, naturally, will be tonight's parade which features, among others, Intel (INTC), IBM (IBM) and Yahoo (YHOO).
And you wanted to be a trader...
Deep breaths as we bring it home, Minyans, and stay on your toes. There are a whole lotta eyes on this close.
Meanwhile, Back at the Bank...
Morgan Stanley CEO John Mack is on the tape saying that the mortgage and securitization markets will take a while to work through their problems.
He also said that the investment bank is trying to understand the collateral behind some securities, but it's difficult, and offering that this situation could take 6-12 months to normalize.
Two quick thoughts. First, THANK GAWD--I THOUGHT IT WAS ME!
Second, I can say with certainty from my days at Mother Morgan that John Mack is about as straight a shooter as you'll ever come across on the street. He's also an uber-sharp trader.
And if he can't understand the intricities of these securities, it says a lot about the securities in question. As well as the banks that are backing them. As well as the government officials who are staking their reputation on them.
Food for thought... and a lot of food at that.
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 email@example.com.
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