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Circle of Trust

By

Sorry for missing this morning's mindmeld...I was gettin' milked left and right!

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"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.

position in qqq

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 todd@minyanville.com.

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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