Watch the internals as a primary intraday tell!
There are things you can replace, and others you cannot
The time has come to weigh those things
This space is getting hot
You know this space is getting hot
Good morning and welcome back to the Columbus Day snack. The bond guys are off and most banks are closed but the Minx remains open and somewhat exposed. With last week's late dip, some levels gave way and opened the door for an ursine soiree. "Remember how jazzed they were when we popped?" asked Boo to his crew right after we dropped, "the upside momentum seemingly stopped and it looks to these eyes like the market has topped." Can the forgotten bears usher in a new scare or will this quick spill be a one-time affair? We've got earnings on tap and lots on our plate so let's settle in for our minxy debate!
There is certainly no shortage of ajita floating around Matador City. Higher oil prices are "taxing the disposable income of U.S. consumers and threatening to hinder economic growth" (according to an always optimistic Treasury Secretary), retail sales remain sluggish, public confidence is being tetherballed by our politicians, terror jitters remain (Israeli intelligence has blamed Al Queda for last week's Sinai Peninsula bombing), layoffs continued to manifest (Bank of America (BAC:NYSE) and AT&T (T:NYSE), the CRB is at a 23-year high and the NDX cut through its 200-day support and removed the catalyst for a slew of technicians.
While that's enough puff to make the average bull ing)" target=_blank>schvitz, the market is rarely as simple as it sometimes may seem. With the ability of the S&P to hold ITS 200-day moving average, the optimists enter this earnings season with a quiet confidence. Further, the ace in their hole during the entire echo-bubble has been the structural metric and Elmer's mantra of easy money. That stimuli has skewed the supply/demand dynamic of global financial markets and it continues to remain a force to be reckoned with. The roadmap in that regard has been the tightness of the corporate markets and our credit cousins remain particularly sanguine.
So what's a trader to do? If one believes that bear markets are dominated by haphazard price action and widespread frustration, it may make sense to open our stance and broaden our horizon. Indeed, active traders have spent the better part of 2003 pressing, stressing and altogether messing up an already difficult dynamic. Those with an elongated look, however, have had a rather rewarding experience on a number of fronts. Identifying secular trends (metals/energy) is the step towards profitable performance but identifying crowded (read: edgeless) arenas is equally enriching. Remember, Minyans, the ability to adapt is one of the most important trading commandments.
Fundamentals will take center stage this week as corporate America delivers the last earnings avalanche of '04. While today will likely focus on technicals (200-days) and posturing, conference calls will soon dominate the landscape. Intel (INTC:NASD), Johnny John (JNJ:NYSE), Mother Merrill (MER:NYSE) and Yahoo! (YHOO:NASD) are on tomorrow's tap and those names--and their respective industries--will likely be the most manicured in preparation. It's all about the three E's--earnings, Elmer and the Elections--and this space is about to get pipin' hot.
We power up this holiday pup and find that the world is sleeping late. Europe, the dollar and metals are all on either side of the flat line as the Nikkei and fixed income are enjoying a three day weekend (lucky ducks). Stateside futures are similarly snoozy although they promise to get their groove on once the opening bell tolls. Please note that the S&P closed Friday sittin' on the 200-day moving average and S&P 1120 remains a focus (if not the focus) as we trade ahead.
Good luck today.
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