NYMEX Holdings, Inc. (NMX)

[teraflop]

Prudential's caution will make sense when the momentum falls off on this, and other exchange-related holdings. While I agree that there is competition, to me NYMEX is still a point of reference. Some contracts on other exchanges price directly off of NYMEX, for example.

While I forsee competition, I also forsee product development in commodities that we've not seen before, and they don't just generate fees for revenue but lower barriers to entry to bring market participants into the commodities market.

That all being said, I'm going to ride through any shake in anticipation of riding through this painful dip. We have no correlation numbers (which would be poisoned by IPO/momo action anyway) to work with but I suspect we'll be pained by correlations with other exchanges for more than 30 days. But CME is poorly correlated with the S&P (43% over 365 days on daily moves) and ICE is even less so (35%) so it shouldn't be all bad during a market correction.

Long & strong.