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Prize Fight

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What's up with the chips?

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Going where the wind don't blow so strange
Maybe on some high cold mountain range
Lost one round but the price wasn't anything
Knife in a back and more of the same

(Grateful Dead)


The afternoon session continues along as the bulls hum a familiar song. It's old hat, I suppose, as Hoofy has mustered more breakouts than Peter Brady. The higher prices are sucking in fresh capital as portfolio managers get seduced by the sirens. Will the thrill self-fulfill or is it destined for a spill? That's the question on our lips as traders trade and the market rips.

A quick walk around the 'Ville finds minty breadth (still) and two winners for every loser. Biotechs continue to shine (as do the drugs) and they're the most impressive sector in four-letter land. The semis feel stallish despite the positive chatter that is making the rounds. It's been S's over N's all day, mind you, but the lethargy in the semi space still warrants a mention.

The underlying bid in gold is also quite impressive. I've been trafficking in some of these names and for every half step back, there's been three steps forward. Adam had some salient observations on the metal charts and they seem to be getting towards the upper end of that range. Still, they act fantastic and I'm being told that there's some sizable stops above $403.5. Just so you know.

Pay particular attention to the semis--they just turned red. A few weeks ago, that was THE tell that something was afoot to the downside. While it may be a simple rotation (into, say, drugs), the Minx will have a hard time shrugging off the Red SOX should they accelerate to the downside. The breadth, as it stands, hasn't dented and the financials are trying to hold their bid. In level land, I continue to watch S&P 1067-1075 and a breach of the upper band tag would bode well for young Hoofy. S&P 1060 remains the downside line in the sand.

Got to hop. As always, I hope this finds you well.
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position in qqq, select semis
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