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Jump Ball!

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Another week in Minyanville is underway with the bears controlling the opening tip. I've always viewed the first half hour of any session as noisy and, aside from some various fades, generally wait for the true tenor to emerge before committing serious capital. That said, the Minx is beginning to settle into her groove and the flickering ticks are once again telling the tale. Let's take a look.

The morning breadth is bordering on halitosis as the decliners are trumping advancers 2:1 and downvolume is dwarfing upvolume 4:1. As you know, these readings can change on a dime but they've been good tells for the intraday action so they should remain a focus. The other thing that jumped off my screen and bit me was the ability tape to blow through our support levels. The next areas of support are S&P 870ish followed by more substantial support at S&P 830. In tech-land, a steady diet of 50 point increments should be used and as such, NDX 950 becomes the new "floor." Again, it's uuber-early and we've got a long day ahead of us--stay disciplined.

Crude oil is up a 2% and that's lifting the energy stocks early. Biotechs have also traded well out of the gate and should be noted. More important, however, is the action in the semiconductor/financial duopoly and, thus far, they've been better for sale. Keep an eye on the XBD (brokers) as well as the BKX (banks) in that complex. As far as individual tells, balance the green CSCO action against a heavy GE and MSFT.

Again, it's early and while I continue to "trade around" a bearish thesis, I'm in pick (not press) mode into the early decline (discipline). Also, be on the lookout for any statement out of Iraq. If history is any guide, Hussy will probably comply with the U.N resolution and we may get some lift out of that. Ultimately, as his credibility is spotty at best, I think that rally will peter out. Just my humble opinion.

Good luck, Mon frere.
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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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