Let there be fur!
And I ran, I ran so far away.
I just ran, I ran all night and day.
I couldn't get away.
(Flock of Seagulls)
Have you ever had one of those days when the pile in front of you infinitely replicates? Earnings reports, phone calls, emails, IMs, charts, chats, flicks, ticks...and just when I swallow the entire pie, Slaino walks in to shoot the breeze. There was a time in my life when I would say "David, I'm too busy right now" but not anymore. I don't care how crazy it is, there's always time to smile with a friend. Life's too short to waste those opportunities.
I've been keying on the banks and breadth and they've held firm all day. While tomorrow's tone will obviously hinge on the overnight news, I will offer that most everyone I speak with is all-of-a-sudden bearish. These aren't permabears, mind you, they're a wide swatch of insights and perspective. Intel (INTC:NASD), for instance, went from "can do no wrong" to "this is gonna mark the top" faster than Fokker flicks his wick. (say that five times fast).
Too easy? Quite possibly. There's no denying that Hoofy has suffered several nose bleeds (and it's been how long since a real correction?) and there may be sellers on the news (either way). As it stands, however, the SOX is holding its acne and the S&P has room to 1150. That doesn't mean it gets there but it certainly wouldn't be a shocker if it does. How you approach these catalysts is purely a function of your time horizon and risk profile. Without defining that, you're walking around blind without a cane, pal.
Sector rotation remains the outstanding theme and today the financials, cyclicals and retails (S&P) benefiting while the semis, energy and metals take a breather. Again, intramarket rotations are prolly the healthiest digestion after a rapid run but that certainly doesn't mean we're out of the woods. Usually, the most dangerous time to be in the forest is when you can't see the trees.
Picture the menagerie standing in a circle juggling chainsaws, bowling balls and blenders and you'll get an idea of my day. I'm certainly not complaining--just communicating (as always) so you get a sense of the madness. The good news is that Hump Day has almost come to an end (not really) and we're two sessions away from an extended three day respite. Humdinger!
Fare ye well into the close.
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 firstname.lastname@example.org.
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