The Jagger Zagger
I wish I was this thin!
And I went down to the demonstration
To get my fair share of abuse
Singing, "we're gonna vent our frustration
If we don't we're gonna blow a 50-amp fuse"
The morning fray is underway as the bulls jump forth and steak their claim. The initial push has spurred the herd through Thursday's highs which, if you recall, was an area filled with banana peels. We're seemingly on more solid footing today but it's early, Minyans--stay on your toes and be extra tight (both ways).
I spoke to more than a dozen players this morning and every one of them thought today was an "up" day. We know what they're looking at--oversold oscillators, holding trendline support, no weekend terror (thankfully) and a new contingency of shorts in the marketplace. Now, from a trading standpoint, we've got to monitor the scope and voracity of the lift as it unfolds.
An early check of the morning breadth is tasty as the winners are swarming losers 3:1. The banks are holding on to early gains but the brokers are in a dogfight. While they're begrudgingly green, the early action indicates that there's still supply floating around. Watch this complex as a potential fly in what is, by most measures, a solid early showing.
S&P 1050, BKX 942 and NDX 1400 are areas I'm eyeing on the upside. If the dynamic has shifted and selling rallies is the way to play, the indices shouldn't power too much higher. It is very thin out there, however, and as such, we've gotta respect the unexpected. Watch the brokers, baby--if this is gonna slip, the peels will likely start there.
I'll be back.
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 email@example.com.
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