May peace be with you!
Run, run, run for the roses
Sooner it opens, the quicker it closes
Man, oh, man, oh friend of mine
All good things in all good time
Talk about a turtle tuck rule! No sooner did the last column post than Sammy tossed the ball to Snapper. The technical types, keying on a few flags of their own, juiced the goose and off they went. Will the offensive line be able to penetrate the staunch defense of S&P 1150? That's what the bulls are lookin' for and if (big if) they can, the only thing left on the field will be the tossed towels from the ursine uglies.
My eyes have been shifting between the breadth (flattish on the big board), the financial/semiconductor duopoly (positive), our levels (held down south, now peering to the north) and our big cap proxies (General Electric (GE:NYSE), Citigroup (C:NYSE) and Johnson & Johnson (JNJ:NYSE)). Why am I looking at this as a market of stocks and a stock market? Simple, those three names are the most obvious breakouts and I wanna monitor conventional wisdom.
Will the mo mo slow slow? Eventually, but emotional tapes have a habit of becoming more emotional. That's why I like to use technical analysis as a backdrop rather than a blind guide--it offers a framework with which to box an opinion. We spoke of the primary metrics this morning and each encapsulates the overall "dilemma." There are enough data points to spur the herd but, under the surface, it may be getting absurd.
Keep an eye on S&P 1150 as we turn the corner and look for the signal from the third base coach. The range is 1150-1160 but a breach of the former may point to the latter. Also remember that the greatest trick the devil ever pulled was convincing the world he didn't exist. As my buddy Carter likes to say, the devil likes to dance in empty pockets. When the bulls blow their wad (of cash) and reach position limit, the red head will spread dread.
Have a peaceful night.
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 email@example.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.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter