Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Leggo My Eggo!


Excuse my burp--I'm just digesting.


If you twist and turn away
If you tear yourself in two again
If I could, yes I would
If I could, I would let it go


The morning fray is underway as the critters tussle, trade and play. The action is unremarkable and after the requisite tests--first down, then up--the Minx is settling into her Hump day hustle. After yesterday's rippage, there is a fair amount of anxiety in the marketplace and that's adding to the pressing and guessing. With a rather important economic report due tomorrow, today will likely be all about posturing.

I just called Fokker over to my desk for a quick tutorial on the recent gaps. I pulled up a 21-day chart of the S&P (for Bloomberg users, that's SPX INDEX GIP 21) and pointed out seven occurrences when the market "gapped" higher or lower. In each and every instance, the Minx filled those gaps before resuming her direction. Friday's downside test of S&P 1020? Filled the gap (from October 3rd) before rallying. Monday's downside test of S&P 1030? Filled the gap (from Friday's opening) before rallying. Yesterday's equity ecstasy? That's right--the upside test filled the gap (from October 22nd) before...

If form holds (and there's no guarantee that it will), the late day gap fillage was a necessary precursor to a Boo spew. Further, S&P 1050-1060 (NDX 1420-1440) has yet to be violated and until it is, the "broadening top" pattern is still alive. With that (humbly) said, it's important to note that tomorrow's GDP data will trump technicals in a big way. The bar has been set pretty high (6%) and an outlier (either way) will spur the herd. Boo has yet to decide whether he wants to see tepid growth or an insanely high number (bear market rallies typically end on good news).

Today's tea leaves are nondescript as breadth is flat and most sub-indices are plus/minus. A few trusted traders are telling me that as long as S&P 1036 and NDX 1393 hold, there's nothing to worry about from a short-term trend perspective. In other arenas, gold is bouncing, bonds are belly soft and the greenback is at a three year low. I'm hearing that large macro hedgies had (have) the short Euro vs. long equity trade on and when the Euro broke (intraday) yesterday, the race picked up in pace. Just an FYI...

As always, I hope this finds you well.
< Previous
  • 1
Next >
No positions in stocks mentioned.

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

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.

Featured Videos