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The Friday freak fest is underway and stocks opened very quietly. How slow is it? It's so slow, you can hear a bonus drop! Hmm...nobody on my trading desk thought that was funny. Anyway, we're seeing the requisite fades (read: buys) into the red opening as traders are conditioned to buy after yesterday's action. Shocker there! Watch S&P 925 (past resistance is future support) as well as BKX 803 and NDX 1130 (200-day moving averages) as the levels du jour.

Meanwhile, the AMG data came out this morning and, surprisingly, we saw $2.2 billion in outflows. With the recent action, one would think money was coming into the marketplace-not leaving. Clearly, there has been a rotation within the market (into high beta stocks), but one would think that the tank must be filled with fresh gas at a point. I don't think this factoid is actionable, mind you, I just thought it was interesting.

For the option players among you, part of my desire to buy volatility is also a function the flow we've seen of late. Professionals have been shorting "vol" pretty aggressively and my sense is that the street is trading negative gamma. If you don't understand what I'm talking about, suffice to say that if the street is set up this way, the action (both ways) will be exacerbated into December expiration. No worries, option newbies...the University of Minyanville will be offering derivative classes free of charge when the new session begins. Wait till you see the Professor!

Let me jump, Mon frere...I'll be back.
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