Let the Games Begin!
It's hard to put a positive spin on weapons of mass destruction!
It's an active morning in Minyanville as the critters "chalk up" and prepare to compete and, after getting a full night's sleep, they're rarin' to go. With the last few sessions much ado about nuttin', honey, they understand the importance of this week's catalysts as they relate to the collective psychology. It's put up or shut up time for the tape and the fence sitters among us will likely choose a side before it's all said and done.
Keep an eye on the greenback this morning as it's come under early pressure. The chatter I've picked up is speculation that Monsieur Snow will abandon the strong dollar policy but, thus far, it's unconfirmed. Meanwhile, and perhaps more importantly, retail sales came in lighter than expected. After last Friday's fade trade, traders seem reticent to press the downside. When bears are scared to short the tape, what does that tell ya?
Across the pond, the BBC reports that U.N inspectors have found "materials related to weapons" (shocker there!) and while it may be too early to extrapolate the repercussions, this could plant seeds of uncertainty. Wall Street had seemingly discounted the war prospects of late and this development may give the bulls pause (particularly after the recent rally).
Tells today include the financials in general and the brokers in particular. I continue to feel that this group is the single most important sector in the market and will tell the tale of the tape. As it stands BKX 800 remains the ceiling but you've got to wonder how many more assaults it can repel before caving in. The telecoms are also in the news as ALA painted the tape positively. This complex is severely underowned by the fund community and while the longer term charts seem oversold, the short-term stuff is extended.
I've got to jump into my morning meeting so lemme sign off and juggle my hats. I've got some Minyanville news to share with you but I'll circle back to it later. In the meantime, if you're a new citizen, I encourage you to check out the shops on Main Street. There are some jazzy duds and artsy prints there and, if you haven't seen them, you should get involved!
See you after the opening.
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