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Deja Boo?

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Fare ye well!

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Well, baby, there you stand
With your little head down in your hand.
Oh my God, you can't believe it's happening again.
Your baby's gone and you're all alone and it looks like the end.


(Don Henley)


The minxy muse is getting abused as the ursine ignite a familiar fuse. When we powered up today's fray, we noted the importance of BKX 100, DJIA 10,400 and the S&P dandruff as the technical backdrop du jour. While those levels remain a focus, most of the action has been the four-letter variety as the nets fret, the nuts get gutted, biotech gets wrecked and the semis get spanked. Now, with the wishbone stretching and the NDX 200-day looming (1468), the critters must decide if we're finally approaching the tardiest rally in recent memory.

There are a few variables that will dictate whether this is denial, migration or.....well, let's just stick with denial or migration. For one, Elmer seems to have taken his foot off the gas pedal to gauge whether the markets can coast on their own. The answer to that question, as judged by the price action since the FOMC minutes, is a resounding NO. Again, I think he's painted us into a crimson corner--but if the alternative isn't acceptable, he could turn around and pump up (in) the volume. That would bode well for the metals, equities, commodities, schnitzel, Brazil--almost anything that operates as a function of supply vs. demand--but will once again crush the greenback and devalue the basis of our investments.

Leaving that debate alone for the time being, today's action isn't as bad as it could have been. Whenever you see rotation rather than migration, money is simply shifting homes rather than running for the hills. The purists looking for a PANIC! bottom don't wanna see this but I would argue that they're barking up the wrong tree (with the VXO near all-time lows). Shorter-term measures (stochastics included) are constructive and we may see some Snappage tomorrow. I will simply remind you to maintain perspective and assign a time horizon to your risk profile. With the Iraqi elections looming and catalyst calendar full, there will be plenty to chew on in the sessions ahead.

I'm gonna hop so I can post this in a timely fashion. I sincerely hope that you all found your way today and that you have a tremendous night.

May peace be with you.


R.P.
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No positions in stocks mentioned.

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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