I just don't know if I've got the energy to do my thing today...
All the vampires are walking through the valley
Move west down Ventura Boulevard
And all the bad bears are standing in the shadows
And the good bulls are home with broken hearts
Oofa loofa Hoofy, where for art thou? With today's drippage, the minxy market has now erased the gains of last week and has set her sights on NDX 1070 (where we "broke out" a few weeks ago). There's a thin line between love and hate and traders are now being forced to pick a side. This is a textbook example of why you should always respect the price action but never defer to it. Those who bought stocks simply because they "acted well" have lost their catalyst on the long side.
With that said, there are bulls out there viewing this pullback as an opportunity to buy the dip and add exposure. The question-and this is THE question as we cast our eyes towards year-end-is whether this is a natural ebb to the recent flow or the beginning of something more ominous (Razor Burn). Unfortunately, the answer to these questions will not be known without the benefit of hindsight and anybody who tells you differently is full of shinola. Make your decisions based on what you know and feel-and always allow for a margin of error.
The action continues to warrant caution and the banks (which a lot of bulls where hangin' their horns on) are slowing losing their bid. I'm keying off of the entire group but if you're watching from home, you can key off of Citigroup as a proxy for the entire complex. The consumers continue to impress (nice feel Snoop), the Macro flow is still skewed to the sell side and we've gotten no direction (either way) from Monsieur Chambo. Meanwhile, the S's are flirting with the downside gap (watch S&P 920) and the Dow is being led lower by a sickly Merck.
Lest I forget, thanks to all my friends in Rubyville who I saw at the Ale House last week-that was a fun time and we'll have to do it again soon. It's always nice to put faces to the names and I very much enjoyed the cold brews and hot wings! Next time, I'll bring Dorothy!
Thanks for your patience today as our team tweaks out the glitches...it's very much appreciated. We know that we're nothing without our readers and we aim to keep you happy. Wasabi!
Hope this finds you with a little jingle in your jeans...I'll be back.
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