I'll take a muscle bound bear and put his face in the sand
Not the last Mafioso I'm a M.C cop
Make you say "Go Hoofy and do the job"
(L.L Cool J)
Now I've seen everything! Hoofy just burst into our office wearing a black kangol, sweatsuit, gold chains and sneakers while rappin' this little ditty at the top of his lungs! Zsupt, Dog? I know that, with over half the trading session left, you're not spending your money just yet---you know better than that. Yes, I see that the market is digesting its early gains and I'm quite aware that everybody and their sister is now focusing on our seminal resistance level. Still, steady consistency has gotten us to this point and we should continue to honor the process.
Whether you're a bull or a bear, you must acknowledge the positives in today's action. Yes, I am curious to see how the market reacts to a stern downside test---particularly if it's triggered by a catalyst---as I want to get a handle on the underlying level of conviction. That said, the breadth thus far is undeniebly bullish (4:1 positive NYSE and NASDAQ), the strength is relatively broad based (watch those soft goods!), and it seems that funds are starting to get squeezed into the market.
Timing remains the most important aspect of our trading decisions in the hours and days ahead. On the back of this morning's reports, we must remain "open minded" at the prospect that the bull trend has begun. However, I've never been a chaser---not in this tape---and there remains a ton of news due out this week. Patience typically brings price and, if it doesn't, opportunities are made up easier than losses. No, this isn't rationalization, it's discipline---and it's served us in good stead.
I am off to the dentist...see you guys soon.
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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