Bring Back Bellbottoms!
Is making me wait
Is keeping me waiting
Alright, before the deadheads get their tie-dyes in a ruffle and the rap fans start creepin' while I'm sleeping--I promise you I'm not going soft. My mom used to play Carly Simon on the 8-track when I was growing up and her songs have always lingered in the back of my mind. Hey...maybe that explains why I'm so vain!
The ISM headline number was marginally stronger while the new orders component was slightly weaker. All in all, it was a yawner and we can now turn our attention back to more pressing issues. Speaking of pressing, I saw overseas hedge funds plow into the market on the opening only to turn around and puke out of their position. Duke & Duke must be loving these guys! The tertiary flow has been relatively muted, although we are seeing some program buyers and hedge fund sellers. Hey, wait a minute! I just sniffed out 2,000,000 SPY's printing on the third market...and it looks like a Macro fund sold. If this turns out to be more than an isolated incident, it may be meaningful. Stay tuned!
Meanwhile, our two main tells are pointing thataway as the banks have caught an early bid and the semis have been trading heavy out of the gate. Sounds like a classic recipe for S's over N's (S&P outperformance of NDX). The morning breadth is interesting as it's the first time in recent memory that losers outpaced winners. It's by a narrow margin and its super-duper early, but it's worth a mention.
That said, the averages are (thus far) holding above their breakout levels and, as long as they do, it bodes well for Hoofy. My options maven Jodi points out that THE level on the S&P is 895. So you know, I remain committed to Boo (for a trade) but, consistent with our discussion yesterday, I'm keeping some powder dry in case Elmer flanks us.
More importantly, I will be making a foray back into solid food territory today as I attempt to put my remaining teeth to the test. I'll likely start out slow (Hershey miniatures), but I may actually take some bites later. I know you could probably care less, but if you knew how much I love to eat you'd understand my excitement!
Gotta hop...hope this finds you well.
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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