Good luck into the bell!
One man caught on a barbed wire fence
One man he resist
One man washed on an empty beach.
One man betrayed with a kiss
Has anybody ever seen Professor Reynolds and Hoofy in the same room at the same time? No sooner did I return from walking Brian to the elevator than the Minx spurted through the upper end of the aforementioned flag pattern. Pop goes the weasel--and stopped goes the shorties!
The rally mode kicked in after repeated tests of yesterday's S&P low failed to break the bank. With the industrials leading the way (strong all day), the rest of the pest is being dragged up in sync. Yes, there is still a pretty obvious rotation in play (out of semis into old school cyclicals) but the rising tide lifted the other boats. The question, into the bell and beyond, is whether the buyers can sustain the momentum.
The internals, which have been the most overt negative, have been s-l-o-w-l-y improving and, while the Nazz has yet to confirm the squirm, the NYSE is working 9:5. I've been trading 'em both ways (with tight stops) and have balanced my exposure between the two sectors. In bipolar tapes such as this (S's over N's), there are two schools of thought on which way to play. Some like to buy strength (S's) while others prefer to play the oversold Snapper (semis). To each his own.
The tricky aspect of this juncture, from my standpoint, is to balance the "eyes" (higher) with the technical studies that are suggesting a top. In addition to twisty stochastics, there continue to be flags offered from respected studies such as DeMark analysis and Elliot Wave. Again, each trader has their own brew but make no mistake, there's an argument both ways here.
I've got flip lids and tickle ticks for a bit so lemme wish you well into the bell. I'll swing back after the close to announce the winner of the Minyanville charity auction. With tomorrow night's festivities looming loud, "Mistere" sits atop the leader board with a generous bid of $5000. Best of luck to all those who are involved!
To bid on this item, click here!
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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