Look at me...it's better than watching those boring screens!
Adam Brodsky is writing today's trading diary. Toddo will return to his post on Monday
I have been staring at my screens for the past hour and I swear not a stock has moved! Even the highest beta names are trading with such tight ranges today. What does this tell us? It could be either that everyone was out too late last night, or the more likely answer, that sometime soon we are going to break hard one way or the other.
Earlier today I happened to be speaking with someone whose opinion I value tremendously. I asked his thoughts about the market at these levels and where we might be headed. He had an interesting theory that included many of the big short interest names moving higher into year's end. What is the catalyst behind this idea? Tax selling, or in this case tax buying (if that is even a term.) As many funds probably have losses on the short side there may be a scramble to lock those losses in. A quick scan of high beta, high short interest names could provide a list of possible candidates. Just a thought.
As I am putting the finishing touches on this piece, the market appears to be pulling back. The semis continue to lead us on the way down. The S&P is holding above the 1070 level and the Dow is holding near yesterday's highs. The NDX is clearly lagging and is testing a triple bottom at 1405.
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 firstname.lastname@example.org.
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