Randoms: Stocking Stuffer?
Double secret resistance arrives in time for the holidays.
- What jumped out and bit me as I powered up my screens this morning? I'll give you a hint: It rhymes with squalor.
- Has phase two of our tricky tri-fecta officially arrived?
- As the world watches the S&P, the NASDAQ Composite has now kissed the downtrend that harkens back from the dot.com days.
- While technical analysis is just one of our four primary metrics, the coincident resistance in the S&P and NASDAQ is intriguing. As we layer in the structural metric (the higher dollar), it may perhaps emerge as something more.
- The tricky aspect? The tape should be lower and it's not. As the markets are never wrong, we must respect--but not defer to--the price action.
- I'm still trading around some short side gamma in the S&P and wanna look at AOL (AOL) as a long candidate in the low twenties. Not advice, and I'm gonna stay light and tight as I'll be away from the fray the next two weeks for a much needed year-end respite.
- The U.S House is considering reinstituting the Glass-Steagall Act, which barred bank holding companies from owning other financial companies, according to Bloomberg. Majority leader Steny Hoyer was quoted saying, "As someone who voted to repeal Glass-Steagal, maybe that was a mistake."
- Ya think, Steny?
- As proprietary trading has long been a core driver of revenue-and yes, that sword swings both ways-this (and the specter of broader regulation) may well be one of the contributing factors of recent under-performance
- As I recently mentioned, equity grants are a valid compensatory model for financial professionals. It provides meritocracy-based incentive and incents folks to be part of the solution as we attempt to rebuild the capital market construct.
- Pretty Sneaky Sis! Didn't the Federal Reserve used to insist they didn't target the price level of homes, stocks or other assets when setting interest rates? When did that policy directive stealthily shift and why didn't it get more press?
- Yesterday we spoke about Citigroup (C) breaking the 200-day moving average and opined that it wasn't the tell it used to be. I may have misspoken and I'm not afraid to admit when I'm wrong (which is why I write so much).
- The stat of the day? Citigroup has four shares outstanding for every single person on earth (thank you Minyan Dan).
- Still looking for holiday gifts for others or yourself? Give the gift of knowledge (and hopefully positive returns) with a subscription to any of our subscription products.
- Yikes-O-Rama! The credit spreads of Greece widened 10% overnight. As part of the Gabrielle, er, European Union, they don't have the same sorta keys to the printing press we do; which is why the union itself is at risk. I would also note Finland and Portugal widened more than 7% as well.
- See it, even if you choose not to believe it matters.
- And keep an eye on the state of the states, please.
- Dry eyes in the crimson sky? Bank America (BAC), Wells Fargo (WFC), Boeing (BA), General Electric (GE) and Amazon (AMZN). IF (big if) this worm turns, those names should lead the speed higher.
- Snaps to Ron Coby & Denny Lamson for their short oil trade and locking in a 22% gain on their UltraShort Crude Oil ProShares (SCO) trade in the Grail ETF & Equity Investor newsletter. Not bad for the first month of the letter, eh?
- Make sure you spend a few minutes absorbing our Hoofy & Boo Holiday Finale. While I was surprised by our resident bull's reaction to children in need, he assured me he was acting and pointed to our 2009 philanthropic efforts, which raised a six-figure size for the kids!
- Along those lines, many sincere thanks to all those who helped affect positive change, particularly in such a tough economic environment; this is one trade that will pay dividends for many years to come. Take a moment to let that sink in; it's the important stuff.
- May peace be with you.
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 firstname.lastname@example.org.
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