Circle of Trust
Sorry for missing this morning's mindmeld...I was gettin' milked left and right!
"The matter, Greg RN, is that when this toilet is flushed, it runs, and when you have a septic tank that's nearly full and a toilet that's been running all night, then you could have a hell of a problem."
--Jack Byrnes, Meet the Parents
The midmorning fray is now underway as Boo clears his voice (he has something to say). "While I may be weak, while I may be beaten, you gotta beware of a bear that's not eaten." Judging from the broken clock on the wall (right twice a day), our resident bear is certainly due. With that said, there's a lot of trading left in the session so stay on your toes (and please, no more guessin').
The first thing that jumps thus far is the ol' dip shtick. The (extremely rare) crimson has triggered a spate of scoopers and I just got hit up with "buying 500,000 SPY," "smart technician buying QQQ," and "too many traders are looking for a correction." The storyline for almost a year has been "long 'till your wrong" and this stylistic approach has proved fortuitous. This we know--but there aren't many people positioned for a second or third dip.
A quick check of the morning breadth finds two losers for every winner in the Nazz and flattish internals on the big board. That "S's over N's" dichotomy is also supported by our leading sector tells. The banks continue to lead by example and are tacking gains onto their all-time highs. The semis, on the other paw, are getting tagged for more than three beans (percent) and that's weighing on the four-letter freaks. Think wishbone, my friends, and either pick a side or stand aside.
On the macro front, both gold and the dollar are slippy, crude is off 1% and Europe is on either side of the flat line. As it stands, the action thus far is corrective (sell the earning's news) but it's a tad early to pen an equity epitaph. Don't get me wrong--we're way overdue and, yes, much extended--but until the financials show signs of crackage, Boo is gonna be eatin' crumbs instead of cookies.
Watch NDX 1515 (S&P 1115) on the downside (multiple January bottoms) and Friday's highs up north as the nearest term levels. And as always, I hope this finds you jinglin' baby.
I'll be back.
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