I so preferred the white, sandy beaches to this crisp winter wind!
We chased our pleasures here
Dug our treasures there
But can you still recall the time we cried
Break on through to the other side
It's almost goofy how textbook this day is unfolding and it has nothing to do with the tape. It's the first day in new office and I want to put on the game face for the readers--and the few systems I do have seem intent on crashing at every opportunity! It stands to reason, right? The Minx wants to suck every ounce of relaxation out of you such that vacation seems like it occurred eons ago. As usual, she's having her way!
The first introduction to the readership is my new assistant, Greg R.N.. For future reference, his Delta Tau Chi pledge name is...Flounder! No...that's not right. Let's call him...Fokker! When I reference this young man, you'll know who I'm talking about. I figure Martin's probably still busy picking up the pieces of his broken heart and, well, one door closes and a new one opens. Let's welcome this Fokker to MY world--he has no idea what he's getting into!
Turning our attention back to the tape, the buyers are giving the upside the old college try and our triple lindy resistance (NDX 1050, SOX 330, S&P 920ish) is waffling in the winter wind. Tapes that are up all day have a habit of closing that way and, as such, I would think the bears would have to get some mojo working soon if they're gonna turn the tides.
The most bullish aspect of today's action is the internals as the big board is 3:1 winners and their four letter cousins are skipping along at 2:1. The biotechs have yet to confirm the rally, however, and to give you a peek into my mind, IF the tape starts to fail, I would look to pound those names first. If they cant get going with the tape ripping, imagine how they'd act if we reverse.
I don't consider the tape broken out YET, although it's certainly acting like it took it's morning viagra. Where do you set your stops? Well, the answer to that question is a function of your individual risk profile (and time horizon) so it's unique to us all. Remember, it's alright to try anything when trading as long as you're disciplined. If you added exposure for a "fade" at resistance, don't justify or post-rationalize if we break out. The definition of an investment should never be a trade that's moved against you.
Tick-tocking through Day 1 in the new digs and, naturally, I've called for a SushiMonday to usher in the '03 mojo. Greg R.N told me he "sorta" likes sushi and, as such, I'm going to have him eat some sea urchin with quail egg to start his tenure. Welcome to Nutsville, Fokker...population YOU.
I'll be back.
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.
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