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Clearwater and Muddy Paths

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I see the bad moon arising
I see trouble on the way
I see earthquakes and lightening
I see bad times today


(Creedence Clearwater Revival)

Boo just came strumming by with his banjo and I asked the little fella to stop playing games and come sit by my side....there's work to be done. Begrudgingly, our resident bear sulked over to his seat, sat down next to me and asked me what was going on. Here's what I told him:

The action out of the gate was impressive as the semiconductors immediately sprouted green and multiple Spoo (S&P futures) buyers hit the pits at the same time. Almost on cue, my IM lit up with "they don't care about bad news!" "They act great!" and "They can't get 'em down." I had to remind my trading brethren that the market had been open for 25 minutes and it's entirely too early to make those assessments. Remember, the first half hour is typically just noise before the true tenor asserts itself. Deep breaths please.

That said, the semiconductor space does act well on the heels of more bad news and I'm trying to get a handle what type of demand it is. We know the space is heavily shorted and certainly, some of these buyers are covering up their shorts. I checked to see if the "look through" mutual funds were buying these names and I was told that the flow was dominated by the hedgies. Away from that, the financials act relatively heavy (haven't rallied with the futures) and my eyes continue to migrate towards Citigroup as the main tell.

Meanwhile, the bond market is green (shocker) and I've put JJ on Alligator watch for the day. I figure, if there's an IZOD out there, Brandon Walsh will find it! Again, it's early people and there's much time and many trades ahead. Stay focused...I got a tingly feeling today.

Be back.
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