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Love for Sale

By

Where unsure, trade "in between"

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Your love is like a tidal wave,
Spinning over my head
Drownin' me in your promises
Better left unsaid


(Pat Benatar)


The Hump Day fray is underway as traders look for something to say. The economic data was mixed--factory orders a bit light and ISM non-manufacturing somewhat better--and we'll now settle in for the session. With Cisco (CSCO:NASD) and Qualcomm (QCOM:NASD) earnings tonight, you can expect a fair amount of posturing in four-letter land. Also note that every technician on the planet is focusing on S&P 1050 (and 1054) as inflection points.

I'm carefully balancing the potential paths as we edge through this session. On the one paw, Scotto's analysis (along with my belief that bear market rallies end on good news) points to an exhaustion high after Friday's jobs data. That may (or may not) prove true but, regardless, there are plenty of decisions to make before that (among them, whether to game that incremental move). The trick, in my eyes, is to adequately allow for the thesis to unfold while maintaining exposure that is true to your view. The litmus test? Ask yourself how you'll feel if the market was either up or down 25 handle. If your angst is too severe either way, you're likely too big.

A quick check of the morning breadth has two losers for every winner. The semis are outpacing the financials (N's over S's) as the piggies never found their footing today. Along those lines, it's worth noting that our friends at Dorsey Wright highlighted the bank sector today and noted a "relative strength" sell signal was triggered. It's a "big picture" development (not a day to day tool) but it's worth a mention nonetheless.

I'm gonna pick (read: nibble) as a function of discipline and out of respect of the looming unknowns. The growing belief (by the few lone bears) that Friday will produce a "spike high" is rumbling through my crowded keppe. Does that mean we won't get there (and the ursine don't have a chance to short) or is that proof positive that we'll blast-off and never look back? Something to think about as we ready ourselves for the coming street fight. Don't mess with the Wongs!

As always, I hope this finds you well.
position in qqq, csco

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.

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