Tickle me Tuesday!
The opening flurry has ticked in a hurry and man, time sure flies when you're jugglin' jigsaws! The combination of earnings and emotion have converged on the Minx and all hands (hoofs and claws) are on deck. Without further adieu (whatever that means), let's dive into today's muck en masse.
We saw some "black box" types (quants) taking (read:buying) some S&P futures (1000 or so) out of the gate and I'm told it was a "one and done" order. On the heels of that, some hedgie types were selling tech (long) although I'm not sure how meaty they are. All the while, the indices opened on either side of the flat line and are now settling in for the daily dance.
The story of Friday's "flexpiration" continues to make the rounds although nobody seems to have an edge either way. As the story goes, long term collars (hedges) were put on last year and struck to the LEAPS (long term option contracts) "off board." The chatter (and, as of now, that's all it is) that this protection lent a bid to the tape and now that it's gone, the bid might follow. Not actionable, per se, but worthy of a quick discussion.
A quick check of the morning breadth is workin' 9 to 5 (nine winners for every five losers) and the sector spotlight is nondescript. I'm eyeballin' Citigroup (C:NYSE) on the heels of its earnings, the cyclicals (3M (MMM:NYSE), General Motors (GM:NYSE), Caterpillar (CAT:NYSE), Intel (INTC:NASD) and Cisco (CSCO:NASD) as daily tells. I'm also watchin' Fokker...he's got a "cat that ate the canary" look goin' and I'm fishin' for a weekend story.
In level land, NDX 1550ish (top of recent band) and NDX 1515 (bottom of same) are areas of note (support) as is the magnet that's S&P 1050. I've read a bunch of reports this morning and most seem to agree that we've gotta go higher before we go lower. Again, as a function of the aforementioned charts and prevailing momentum, it wouldn't shock me although at this point in the game, toes are meant to be stood upon.
I'll be back.
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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