Random Thoughts: China Rider!
The Grateful Dead try to awaken the bears.
- I sense fireworks on the horizon—remember, expiration is tomorrow—the direction of which remains to be seen.
- I attended the Pee-Wee football draft last night as I assume an assistant coaching position for the first time. Welcome to the burbs, Coach Harrison.
- I heard on the radio this morning that household medium income has dropped for the fourth year in a row and was reminded of our old adage, “Inflation in things we need; deflation in things we want.”
- Should the tape scrape lower, we’ll look at the price action in crude (-8% following the FOMC) and think to ourselves, “Commodity volatility typically precedes equity movement.”
- The financials, led by Goldman Sachs (NYSE:GS) and big beta, led by Google (NASDAQ:GOOG), Apple (NASDAQ:AAPL) and F5 (NASDAQ:FFIV) are leading the tape lower in the early going. Of course, it’s not how the market opens, it’s how the market closes that matters most.
- Expiration influences typically manifest in the days prior to the actual expiry (tomorrow). That said, there is all sorts of chatter regarding re-weightings and re-balances on the close tomorrow. I’ve traded—quick math—roughly 264 expirations in my career and I don’t try to game this sorta stuff, I just respect that it’s “out there.”
- If your firm would like to sponsor Festivus 2012 and give back to the kids—come on now, it's a write-off!—please let us know. The sponsor banners will appear on every Minyanville article from here to there, as well as registration and signage at the event. Plus, it's a GREAT event that celebrates the journey with our community!
- Good luck today; one step at a time as we continue to find our way.
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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 email@example.com.
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