You know there's Something about the market when the Ted Stroehmann wanders into Minyanville looking for answers. Hey stalker! You don't need 7-minute abs to profit in this market, you just need the proper perspective and steely nerved resolve. Grab your baseball, and let's take a look.
At the risk of redundant redundancy, it's impossible to talk about today's action without mentioning the financials. The BKX is now down almost 10% from Tuesday's close. That's a tough year in some circles! Consistent with our desire to view the big picture as a series of little pictures, Warren has informed us that the next support levels come into play at 636 (closing low on July 23), 622 (a Fibonacci level) and finally, the July intraday low of 605. Man, this action is uglier than Magda!
Meanwhile, Ted Healy (fresh from Nepal) points out that the SOX (PHLX semiconductor index) is flirting with its yearly low of 231, which will surely begin to garner attention as the talking heads get wind of it. Much like the now famous "double bottom" that everybody is focusing on, conventional wisdom dictates that this (level) will be a positive IF it holds and negative if it doesn't. Think about that...it's better at higher levels and less attractive at lower levels. This, in a nutshell, is my main beef with technical analysis.
Flow wise, it's been deathly quiet as we waffle and wade through the considerable muck, and while there remains the "possibility" of Snapper sneaking into the mix, I would think he has to start asserting his will soon. The internals are negative-but we've seen much worse in our time together---so keep half an eye on them as we round third and enter the home stretch.
Now, if you'll excuse me, I've gotta go get myself gussied up for my big coffee date with Mary. Wasabi sister...want some hair gel?
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 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.
Get The Minyanville Daily Recap Newsletter
Stay current on financial news, entertainment, education and smart market commentary.