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Saucy, Bernaise!

By

Hey Rhonda--Tony's taken!

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Alright, it's quite clear that the Minx is in one of her moods today! Almost everybody and their sister expected the first move to be higher and, naturally, the Jedi mind trick was to the downside. The financials (watch BAC and FNM) and the semis (INTC and KLAC) once again told the early tale and, as it stands, they're grasping for traction.

A quick check of the morning breadth reeks of halitosis as losers are spanking winners better than 2:1. As Tony just said on CNNfn, a compelling argument can be made for both camps and, by extension, the same situation exists for the daily action. The bears have their bullets (technicals, anthrax, war, complacency) and the bulls have their ammo too (momentum, looming break outs, "solid" earnings). Chose your poison but stay tight, cookie--it's trippy out there!

I currently have two legs in the bear costume (50% conviction on the short side) and, as the aggregate tape is (marginally) lower than where I initiated my posture, I have a decision to make. My feel on the direction remains unwavered...what I'm struggling with is the timing. In other words, if I sense the potential for a blow off before a break down, do I want to have both legs in fur?

I'm weighing whether it's prudent to place an upside stop on one appendage (leaving one) but, as it stands, I'm gonna sit tight. My stochastics have given firm sell signals in the S&P, NDX, DJIA, BKX (banks) and XBD (brokers) and, while they're surely not timing instruments, I am going to count to 100 (backwards by primes) and take a look. Also, pull up a five day chart of the S&P and you'll see how important the 922 zone is (support). If we break that level, some technical bulls will get shaken out.

Deep breaths, my friends...the day has only begun. If you'd like to pepper your flickering ticks with a few smiles and good information, tune that dial towards CNNfn right now. Snoop Tone and the incredibly minxy Rhonda Schaffler have some serious financial mojo working! Hey Tone--bring her up for sushi!

I'll be back.

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.

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.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

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