A View with Some Room
By Todd Harrison Nov 11, 2003 2:58 pm
Good luck into the close!
"That is why you'll never be a great detective, Cato. It's so obvious that it could not possibly be a trap."
--Chief Inspector Jacques Clouseau
The afternoon flow is exceedingly slow as the Minx nips and tucks at the recent plateau. The question, for me, was one of degree as I wanted to see what the bounce would be. Thus far it's anemic (and not very scenic) but we're still in the zone where Snapper can zing it. Will the turtle impress despite his bad breadth? He could, I suppose, if the crowd is now pressed.
It's hard to have too much conviction (for the rest of the session) when it's this wispy thin. The breadth and Citigroup (C:NYSE) are telling you to steer clear while the semicaps and retail are begging you to fear the turtle. Other than rolling some exposure (from November to January), I've spent the better part of the day scanning charts, reading research and listening to Fokker dreamily discuss his new love interest. She must be special...he keeps doing push-ups so he gets "pumped" in time for his big date!
In all seriousness, the ability not to trade is sometimes as valuable as trading ability and I've done a bit less. The gorillas were swinging this morning (on the sell side) and I'm currently trying to get flavor on whether they'll be back (pressing) or looking to unwind (covering). My thoughts regarding how I wanna be set up (consumers over cyclical, long "situations" and short financials and tech (via defined risk puts) remains the same. Against that, I can (and will) trade to augment my exposure intraday if need be. Net/net, I'm allowing for some near-term bounce but wanna fade (read: sell) rallies. And obviously, I share these thoughts with educational intent (as opposed to advice).
So that's where we stand. The S's are toeing 1044 (as we thought they would), the NDX is trading (marginally) below support (which will now act as initial resistance), the internals leave a lot to be desired, gold continues to firm (although gold stocks are off) and yours truly has to go get a flu shot. I felt it creeping up on me over the weekend and, sure enough, I'm now face to face with Mr. Bug. You're not a bug, are you gnat?
I'm gonna turn my lid around and play trader but, before I go, I want to welcome all the new Minyans into the fold. This community was built with a mission of philanthropic education and I hope you find it as rewarding to inhabit as we do. Over the next weeks, months and (hopefully) years, we want to make a difference in people's lives. With your help, we surely can.
Have a peaceful night.
position in ndx
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