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Fancy Pants

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I figure that factoid is DUE to be wrong.

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A flight of fancy on a windswept field
Standing alone my senses reeled
A fatal attraction holding me fast,
How can I escape this irresistible grasp?


(Pink Floyd)


The morning fun has begun as the bulls give chase and the bears are spun . The economic numbers were relative nonevents and, after the initial flurry of reactive orders, all eyes have refocused on our levels. It feels like deja vu all over again as the fluttery ticks tickle the flicks. All that remains to be seen is whether the vacuum will clean up the bears (and honor the factoid) or if the trapped bulls pull the ripcord into the weekend.

Outside of the obvious technical battles, it's worth noting that today is year end for a bevy of large funds. While it would be great to believe that "window dressing" is a thing of the past, we all know better. As such, expect some drafty action (and a few distractions) as we edge our way through the Halloween muck.

The first try to the sky was rebuffed by the bears and Hoofy's heroes are once again huddling. Breadth, which was minty fresh out of the gate, has edged back to a more balanced posture (S's over N's). The semis have exhaled a bit (can't blame 'em), the financials are holding their own (BKX 950 is next resistance), gold has resumed the zoom and the rest of the markets seem to be in headlights.

I'm keeping a keen eye on Microsoft (MSFT:NASD) as a trading tell. The chatter on the street yesterday was that there was monster size for sale as a function of their employee stock plans (dealer "getting off" the hedge). Also watch IBM (IBM:NYSE) as it continues to flirt with the upside gap fillage. We've already seen this phenomena play out in both individual names (KLA-Tencor (KLAC:NASD) and in the major averages (S&P). As big blue is the ninth largest component of the S&P, it's worth a mention.

I've got some strategic ideas but, as they're not time sensitive, I'll circle back to them. As it stands, the Minx is a bit sluggish and we just took out the NDX lows from yesterday. Wednesday's low, for those looking for a reference/inflection point, reside in and around NDX 1410 (nearest term support). The comparable level in the S&P, so you know, is 1043.

As always, I hope this finds you well.
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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 todd@minyanville.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.

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