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Jam On It!


Clearly I remember picking on Hoofy
Seemed a harmless little bull
Oh, but we unleashed al lion
Gnashed his teeth and gave the upside a real test

(Pearl Jam)

Quiet is as quiet does, Forrest, as the meandering Minx slowly finds her way around town. The crowded venue that is my mind keeps vacillating between the lethargic action in the financials and the early traction in the semis. Shorting a dull tape has been a nasty endeavor of late but it's important to define your timeframe before making that decision. Remember, trading is a constant and evolving balance between time and price.

I slipped one leg into my bear costume this morning with the conscious thought-dare I say hope!-that the market would rally and we could add exposure higher. It's a function of style, really, as there is certainly a contingency among you that trades purely for the day. While I've elongated my horizon as a function of the environment, each of you needs to identify an approach that allows you to remain adaptive, proactive and balanced.

On the flow front, I've seen some sizable futures sellers out there and (as always) there are two ways to interpret this. Either it's a signal that the supply/demand curve is skewing to the sell side OR the Minx is absorbing the supply before she (burps and) continues higher. With the BKX (banks) down triple sevens and the breadth turning negative, my inclination is that the former is in motion. However, the day is barely an hour and a half old and I'm keeping plenty of dry powder to fade the Minx if I'm wrong. Hey, wouldn't be the first time!

Feels N's over S's (NDX outperformance of S&P) as the sub-sectors in tech (semis and storage) have a better "feel" than their big board brethren, so factor that into your mix as we find our way. Other than that, it's pretty quiet as I chew through my charts and scan the horizon for actionable levels/trades. As an aside, has there ever been a year when the N.F.L has been more up for grabs? I mean, about parity!

Hope this finds you having a splendid Monday. Be back.

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