I'm gonna tell you how it's gonna be
You're gonna give your love to me
I'm gonna love you night and day
Well love is love and not fade away
The tape ticks to life and Hump Day in Minyanville has officially begun. The opening pop-drop-pop-drop was too quick (and unnecessary) to play and, as usual, the first half hour was full of noise and emotion. Now, as the tape settle down and Maria catches her breath, it's time to roll up those sleeves and take a hard look at where we are.
The level that I'm focusing on is S&P 870 (although NDX 1000 is 'a' level as well). My inclination is to fade (read: buy) the first schnitzel down as a function of our discussion in the previous post. Yes, I am troubled by the internals (2:1 negative), Latin America (tinder box), the fugly financials and the looming neckline in the SOX. That said, my plan is to set a stop below the support zone and if it's breached, I'll cut bait.
With the S&P sitting at 880, I'm going to slip one arm into the bull costume (25% conviction on the long side). If we approach THE zone, I'll slip another leg in and, as I've said, will stop the monster out if we ripcord through the zone.
Engine room, more steam!
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