The Chain Gang
Well you can fall for chains of silver
You can fall for chains of gold
You can fall for pretty strangers
And the promises they hold
The afternoon gamble continues to scramble and--blink and ya missed it--we're right back at the exact levels of one week ago. I don't know about you, but that sure seems like a whole heckuva lotta work to come full circle! Wouldn't it have been a better trade to leave last Wednesday, spend the week relaxing and come back today fresh and zesty? Hey, if wishes were knishes...
Back to life, back in reality, the green screens continue to scream as traders hop on the trampoline. While I am naturally suspect of the sexy sirens (who, me?), my eyes keep drifting to the minty breadth in the S&P. Whenever you have four winners for every loser, it's hard to make a compelling case for the short side (at least for the day). That doesn't mean a reversal of fortune can't happen, mind you, but it's been our best tell and it's got a decent smell.
Hoofy will argue that today's action--as it stands--is significant on a few fronts. First, the pattern of distribution (in place for two weeks) has reversed and stocks are being accumulated en masse. We've seen this before during this dry spell (September 23) only to see the distribution continue the next day. The stochastic buy signals (S&P and NDX) point to a more sustainable bounce but, again, the tape suffered technical damage last week and that won't magically disappear (like my hair).
Senor Beeks will swing by tomorrow with the initial jobless claims (exp. 395k) and factory orders (exp. -.5%). As discussed in this morning's opening missive, each data point will be dissected by the "does the economic data support a robust recovery?" crowd. My contention remains that a jobless recovery is a trip through fantasy land but, hey, none of the caps on my hat rack reads "economist."
For all you red blooded American baseball fans, let it be known that Canadian Stéphane Vigeant was the first to identify Chipper Jones (1999) as the answer for today's trivia, eh? For that, he'll be sportin' a Minyanville tee of his choice during the upcoming hockey season! Despair not, fellow Minyans, as there's more where that came from! In honor of Minyanville's one year anniversary, the critters are standing by with a fresh supply of shirts, fleeces, cookies and art work!
Along those lines, I am overwhelmed by the sheer magnitude of kind emails received today in support of our collective mission. It hasn't always been easy--and it hasn't always been fun--but we dared to dream and you've come along for the ride. For that, we thank you! The vision of philanthropic education remains strong and as we forge ahead, the critters eyes remain on the prize!
As always, I hope this finds you well.
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.
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