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Jobs Report: Heads I Win, Tails You Lose!

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QE3 embers are stoked; the labor force is not.

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In terms of forward catalysts, above and beyond the next FOMC (Goldman pegs QE3 at 50-50), please circle September 12 on your calendar. As per this excellent Bloomberg article:

In the morning, the German supreme court will rule on the constitutionality of the planned permanent rescue fund, potentially upsetting Germany's more than half-century pursuit of European unity; at lunchtime, the EU commission will lay out its proposals to put the ECB at the heart of continent-wide banking supervision, already questioned in Germany; and at sundown, polls close in an election in the Netherlands after a campaign marked by calls for more spending at home and less on fiscally irresponsible neighbors.

Minyanville Professor and T3 Maven Scott Redler, whose trading vibe I respect tremendously, recently called the upside trend our friend and the short side "cute." That has proved prescient as fund managers returned from the beach to find themselves fending for a job and chasing performance (with a perceived Bernanke backstop).

I will only add that the only thing more dangerous than "cute" is being "comfortable" - and when a direction appears obvious, the path of maximum frustration typically isn't far behind.

I enter today with a right-sized put position in the QQQ (I raised my stop from NDX 2800 to NDX 2850 to allow for a pop-and-drop). Whether I'm early or wrong will depend entirely on where the averages are when I close out the position. I'm underwater and truth be told, I feel pretty silly to be on this side of the market. While the best trades are usually the hardest fades, this jury remains out on this particular try.

Separately, and at the risk of blurring the lines between church and state, some of you might have seen the eSignal media campaign that (officially) launched yesterday. (This is one of the spots; filmed in 105 degree heat no less!) Those who know me understand that I wouldn't put my name to something that I didn't believe in. We're stoked by this alliance. And while we don't "do" advice in the 'Ville, I would suggest taking advantage of the free 30-day trial.

Chart of the Day

Please keep this chart in front of you. If history rhymes, commodities must rally, the S&P must fall, or there will be a combination thereof as we regress to the historical meaning of the modern-day coupling.


Click to enlarge

R.P.

Twitter: @todd_harrison

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Position in QQQ.

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.

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