That was quick!
Well, I ain't often right but I've never been wrong.
It seldom turns out the way it does in a song.
Once in a while you get shown the light
In the strangest of places if you look at it right.
The two sides of the Hump Day tetherball...
Reasons for ursine optimism?
- While two days do not a month make, Boo mapped out a defined risk game plan yesterday.
- Google got thumped, leading to some N's under S's. Beta led the performance anxiety higher off the October lows.
- Some non-confirmations emerged during this latest spike higher.
- Extended tapes and lopsided sentiment often lead to trap doors.
- Gap fillage (and downside reversal) in the homies.
- Alotta firms close their '05 books today, potentially altering the supply/demand dynamic into year-end.
Resaons for bovine faith?
- A pullback to S&P 1245 would be a healthy retest of recent acne.
- No news is good news when performance anxiety manifests.
- The brokers, banks and trannies, despite signs of recent supply, are a strong day away from all-time highs.
Overbought tapes can become more overbought, particularly when emotions are running rampant. I sense a meaty pullback but the timing has yet to crystallize in my mind's eye. It could be sooner (S&P 1275 is a relatively tight stop for those looking to play that way) or it could be early '06 business (after the performance fee checks clear).
Good luck today.
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