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Quick Missive from Rubyville

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Hit 'em hard!

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Good morning Minyans

I am traveling for business today and it will be difficult for me to post. As I had a free moment, however, I wanted to pen a quick missive and touch base with the Minyanhood.

After Friday's nonevent, the morning tone is firm and the same dynamic (from last week) remains in play. S&P 1050-1060 was--and still is--formidable technical resistance and that's the hump that Hoofy will attempt to mount. He's had a couple of runs at it and with each try, a layer of supply is absorbed. The single biggest question, for traders, is whether the bulls are already loaded up (and would be trapped if the acne doesn't spread) or if they're simply storing energy before putting (yet another) sprint.

While "stop orders" likely exist above resistance, the tape remains extended (stochastics) and, thus, vulnerable to potential reversals. Watch the financials as a tell (the brokers have a similar chart to the S&P), the breadth (been a solid read), the semis (higher thus far), biotechs (heavy) and Fokker. Somebody always has to watch Fokker.

This "area" is highly charged with emotion so take a deep breath before diving into today's muck. How you approach it (climbing aboard or selling into strength)--will go a long way in defining performance. For my part, I'm happy to roll up stops on existing long positions and add "cheap underneaths" (downside puts) into the ramp.

I'll be back in the saddle tomorrow morning. Good luck today, my friends, and hit 'em hard.
No positions in stocks mentioned.

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 todd@minyanville.com.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

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