Footprints Dressed in Red
This tape has more swings than a playground in Hedonism!
I wanna take you home
I won't do you no harm, no
You've got to be all mine, all mine
Ooh, soxy lady!
The early inning optimism has been snuffed out as the Red SOX couldn't muster a rally. This is a good real-time example of a sector that traded heavy. Despite the green seas and spiky futures, these names never participated. That inferred supply in the street and, sure enough, when the tape settled down, this group got snipped for a quick 3%.
I hate to sound like a nervous nellie, but the head and shoulder pattern in the SOX is very much alive and kicking. For Bloomberg users among you, pull up SOX (index) GP and you'll see exactly what I'm looking at (any six month chart will do). That is a textbook formation (see the symmetry?) and, regardless if you're bullish or bearish, you should be aware that it exists.
A quick check of the morning breadth shows us that the tone is relatively better in the NYSE and, as we key off our trading tells, that shouldn't come as a shock. Away from the SOX (which is THE focus so far), I'm watching the brokers for ANY signs of slippage. When the financials and semis are pointing in the same direction, the rest of the Minx usually follows suit. The storage space also warrants a mention as QLGC is down 3 and dragging it's contemporaries with it. This stock is the poster child of momentum investing (along with EBAY) and it should be on your radar.
Finally, CONGRATULATIONS to Youhang Peng for nailing the trivia question. The correct answer, and I shvitz you not, is that Minyanville currently has a following in 49 separate countries! I'm sure Daisy has a lot to do with it...but I'd like to think that positive energy and good kuon plays a big role. I'll tell ya, if Minyans ran each of the countries that they reside in, we'd have a decent shot at World peace!
Hope you're hittin' 'em hard.
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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