Todd Harrison: Bulls Celebrate Stocks at Highs With Fear at Lows
Underperformance isn't "Kool," no matter how you slice it.
There's a party goin' on right here; a celebration to last throughout the years...
-- Kool & The Gang
The S&P 500 (INDEXSP:.INX) is at an all-time high, the Dow Jones Industrial Average (INDEXDJX:.DJI) is trading above 17,000, and anxiety, as measured by the VXO (INDEXCBOE:VXO), has never been lower -- ever.
With Independence Day upon us, the Bulls and their Gang have every reason to dance, Hurricane Arthur be damned.
While some will argue the rally is synthetic, driven by manipulated agendas and bastardized by robots, anyone who bought (or held) until now is doing a jig all the way to the bank. Of course, paper gains are just that until a sale is registered, but why let semantics and process get in the way of a good time?
I was supposed to be on holiday this wee -- the second annual Del Corando respite with my wife and little one, enjoying some down time while the twins are at camp -- but it wasn't meant to be as there is too much to do. That's not as much a complaint as communication, for I know the alternative -- not enough to do -- wouldn't be much fun.
A holiday rendition of Random Thoughts? Glad you asked; in no particular order:
VXO 8.72, registered yesterday, is the all-time low for the volatility index; keep an eye on that as they typically take three days of theta out of premium before a long weekend.
If you don't know what theta is, read this; one of the most valuable aspects of MV is the library of content from top-notch human capital, and Mr. Succo is best in breed when it comes to derivatives.
And here's the MV Dictionary, soup to nuts.
And our 20 Trading Commandments.
And the Hoofy & Boo library. Weekend at Broadcom remains one of my faves.
I wonder if Twitter (NYSE:TWTR) is getting tired because the World Cup is edging closer to a finale?
Breadth on the big board is almost balanced -- interesting -- while the four-letter freaks enjoy a 2:1 positive status.
We flagged BKX (INDEXSP:BKX) 72 yesterday, which has been resistance over the last month. We're through there now.
You know what? With an entry price of $29.99, it would be silly not to sell some Twitter. Stamp a ticket, I've gone home on the position. This was a classic example of not letting an opinion get in the way of making money.
I know price targets are silly but please keep in the back of your mind that the S&P "bull case" price target has now been met. So there's that!
- Have a happy and safe 4th, and remember not to drink and drive!
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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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