Snapper--get out of your shell and help me out here!
Another session springs to life and the Minx is on the prowl. Slaino just walked into my office and asked me what I thought. I told him that a rally to resistance (S&P 870) wouldn't shock me--but it's likely a good fade (read: sale). I also told him that I'm not sure I wanted to game that schnitzel higher...I may patiently wait and "put 'em out" if they get there.
Extending that thought, a hard sell-off from there (or here) will likely set the stage for that stiff rally I referred to this morning. You can wipe your nose with the above thought as nobody can outthink the Minx---but this is a forum for discussion and, as the thesis begins to crystallize in my keppe, I wanted to put it out there.
The early morning action is being dominated by selling but a few themes are beginning to emerge. The Semicaps act dry (remember, NVLS and AMAT were upgraded) and that complex should be a focus. The SOX is danglin', baby, and if it doesn't find some traction soon, there's gonna be a dandruff snowstorm. Also, check out the XOI (oil), they gave a stochastic buy signal and the group is a meadow of green. Finally, keep half an eye on Citigroup--a tick at 34 will confirm a triple bottom break (that coincides with the BKX 725 break).
An early check of the morning breadth reeks of halitosis as the losers are trumping winners 3:1 in the Nazz and S&P--but it's super early. I would expect a fade (higher) attempt shortly but, unless the internals begin to shape up, Snapper's gonna have a tough go of it.
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 firstname.lastname@example.org.
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