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Low and Behold

By

DOH! They WANT to rally but the banks and breadth just won't let 'em!

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The probe continues, Cartman, and both the NDX and S&P have (thus far) held Monday's lows. Throw those levels on your trading radar as they're getting "louder" on the trading wires. Call it 980ish on the NDX and 845ish on the S&P...and call me if they get there!

Meanwhile, back at the ranch, the banks were toying with technicians as they hovered above the BKX 725 kill zone. As you know, I don't like playing breakdowns (breakouts) when the occur after furious selloffs (rallies) but, regardless, we must monitor these developments and factor them into our mix. The bulls stepped in and defended their level--but keep half an eye on 'em...they're super important.

Taking a walk through the other sector bases, the oil patch (XOI) is still ripping, the SOX continues to act dry (turned green), storage "hangs" and the consumer names act heavy. The breadth has upticked marginally (2:1 negative) but, still, it's yet to confirm the upside. It felt a little "pressy" on the lows and the fade (higher) was a natural extension of that. Now, as the futures attempt to fill the opening gap, the game gets dicier--stay on your toes.

The stochastics in the SOX, S&P and DJIA are pixels away from confirming and the consumers (CMR)and brokers (XBD) are beginning to pretzel twist (on the buy side). Again, this is only one input so take these signals with a grain of salt and an two open eyes.

I've got a sushi print in the works today with one of the most respected voices on Wall Street. This fella, who I think is tremendous, is going to be a Professor at the University of Minyanville and we're gonna discuss the curriculum over some protein and schnitzel. Why am I telling you? Because at high noon, I'm gonna step off the desk and give my friend my undivided attention--he's earned that respect.

Hang tough, Minyans...and hit 'em hard.

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.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

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