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.
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