If this keeps up, the performance anxiety will start to kick in the other way!
The clock on the wall's moving slower
My heart it sinks to the ground
And the storm that I thought would blow over
Clouds the light of the love that I found
A lethargic Tuesday trading session is slowly making its way towards the closing bell and its decision making time in the city of critters. The blind ambition crew, who was betting on the "inevitable" breakout to sell/short has to (at the very least) be a tad nervous by now. The tape that could seemingly do no wrong is looking more and more like the crowd that can't shoot straight. What gives?
There are a lot of reasons why the market should be lower but, as we know, that doesn't necessarily mean it always happens. When a tape exhibits the ability to shrug off bad news-oil spiking, dollar tanking, saber rattling-traders are conditioned to buy. The problem, and this is something we used to discuss in my old shop, is that "it" never matters-until it does. That's why, at the risk of being redundant, I'll once again remind you that we need to always respect the price action but never defer to it.
With a handful of earnings tonight (XLNX, MOT, SANM) and tomorrow morning (LU, EK, JPM, MER, PFE), there will be plenty of news to impact the coming price action. Thus far, nobody from corporate America has said anything to justify the recent rally but, hey, the fat lady has yet to sing. In the meantime, we must continue to read the teas leaves and keep our right hand up. The financials and breadth never gave Snapper the wink today and, as such, he was wise to stay in his shell.
Alas, tomorrow is Hump Day in Minyanville and there will be new trades and better days. The rule of thumb, when trading flickering ticks, is that you can trip as long as you don't fall. If you didn't make as much (or if you lost too much), dust yourself off and get in shape for tomorrow's festivities-it's only January!
Have a peaceful night.
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.
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.
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