You can't ball!
The clock on the wall's moving slower
My heart it sinks to the ground
And the storm that I thought would blow over
Clouds the light of the love that I found
The afternoon swell has started to smell as we creep and we crawl towards the closing bell. A snapshot of the action is flat as a pancake but the inability to forge through S&P 1045 (NDX 1390) has raised some furbrows. Now, as Intel (INTC:NASD) and the semis turn and are red, the curious action is starting to spread.
Tomorrow's expiration notwithstanding, this is shaping up to be an interesting jucture for the mighty Minx. Despite the rally tries, we've still put in some lower highs on the averages while repeatedly testing S&P 1035 (50-day). That forms a flag, of sorts, and sets the stage for potential fireworks.
I've heard a plethora of reasons (from my coverage) on why the market will hold...the financials are oversold, the S&P (and BKX) 50-day held, the stochastics are inching closer to buy signals, sentiment is too cautious, the market has shrugged off all kinds of bad news this week, yada yada yada. All of this will be true if the market rallies but there remain legitimate downside concerns. I know that risk is a four-letter word (after this year's rally) but, at the risk of getting flogged, I still think this period is Boo's best shot at the brass ring.
Tomorrow is a light day on the (known) catalyst front so we'll be left to our devices when reading the rosie palms. It seems to have become conventional wisdom that expiration will lend a bid to the tape so it's unclear how many traders are gaming the upside (and would potentially be trapped if they don't lift). My contacts tell me that all kinds of calls came in when we poked through S&P 1045 (briefly) looking for ideas--any ideas--for stocks to buy. Important data point? Who knows...but I thought it was interesting and wanted to pass it along.
I'm gonna hop, rabbit, so I can tickle the ticks into the close, conference with queen Casey after the bell and try to get to that thing they call "gym." It's easy to forget about your health in this business so rather than join Aaron for that gaggle (he blew me off), I'm gonna roam the paint and grab some rebounds. Watch out!
Good luck into the close.
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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