Random Thoughts: Frankenstorm, GDP, Apple, and Amazon

By Todd Harrison  OCT 26, 2012 11:10 AM

The perfect storm on Freaky Friday!



Editor's Note: Todd posts his vibes in real time each day on our Buzz & Banter.

It’s a Freaky Friday in the City of Critters as we juggle economic data (GDP beat expectations, but let’s be honest folks, 2% quarter-over-quarter growth, despite $15 trillion odd reasons for it to be snazzier, leaves a lot to be desired), earnings (Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) both missed, but the reaction to the news is always more important than the news itself), and the widespread fear of Frankenstorm, which sets us up for a wild and wacky session next week.

Before we dive into today’s Random Thoughts, I would like to update y'all on three critical inflection points in the S&P (INDEXSP:.INX), the NDX (INDEXNASDAQ:NDX), and the VXO (INDEXCBOE:VXO).

While the flush and recapture of the NDX 200-day (last night following the Apple report) is on-the-margin constructive, today’s close will be entirely more important. Despite the brave face by Apple,  Google (NASDAQ:GOOG), and Amazon, we are very close to this all-important support, which has now been tested four times (and gets weaker with each subsequent test).

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The S&P is 30 handles above the 200-day moving average while the VXO is basing above its 200-day. That seemingly supports a press lower, perhaps to S&P 1380, where it will NEED to hold if we hope to avoid an all-out flush into year-end.

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See all sides--and manage risk accordingly.  Guessing, pressing, and stressing is no way to go through life, son.

Random Thoughts:

Twitter: @todd_harrison

No positions in stocks mentioned.

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.

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