These eyes are cryin'
These eyes have seen a lot of loves
But they're never gonna see
Another one like I had with you
(The Guess Who)
The morning eyes are filled with tries as crosscurrents blow the QQQ's and SPY's. The initial press lower on the White House scare was squeezed out of the market and the true agendas are starting to emerge. They act jittery (and squeezy) but THUS FAR, the breadth hasn't confirmed the upside. There are 4 losers for every 3 winners (flattish on the Nazz) and that's been a swell tell. The risk, for Boo, is that the internals get 'dragged' higher and lag the broader tape.
The first dip lower tested the S&P 50-day at 1035 and dutifully held. This is the fourth test in as many days and, just as S&P 1060 got weaker with every rally attempt, the 50-day is equally weakened with each try. As it stands, the N's are dancing around NDX 1380 (been a source of contention) and the S&P is filling the morning gap.
The financials, after overt weakness on the opening, are now attempting to join the party. Citigroup (C:NYSE) is my main tell in that arena as it pretty much encapsulates everything that is finance related. Retail and biotech also act well (early) and Intel (INTC:NASD) is trying to assume a leadership position for the semis. Despite the Nazz jazz, Intel and the semicaps have yet to give their blessing.
Tomorrow's expiration is surely adding spice to the mix so understand that there will be certain things that you won't understand. For my part, I'm watching the breadth, Citigroup, Intel and S&P 1035-1045 as a band. As I said in yesterday's last post, I think this rally will peter out...I'm just not sure if it's this week's business.
It's thinner than Kate Moss in a sauna so be tight, Minyans, the day has only just begun.
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 firstname.lastname@example.org.
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