Don't touch the Dairy diva!
You better lose yourself in the music, the moment
You own it, you better never let it go
You only get one shot, do not miss your chance to blow
This opportunity comes once in a lifetime
Well alrightee then. The Nasdaq comp is licking 2000, the Dow is within spittin' distance of 10,000 and the S&P is shoving 1075. You could almost smell the rubber hitting the road here as we edge through Hump Day. Will she dance as the bulls romance? They're trying--but stay uber-tight Minyans...this one is far from over.
Dipping your toe in the water during a feeding frenzy is always dangerous. The breadth is minty, the brokers and semis are trying to lead by example and there's a whole lotta huggin' going on. The shorts are getting stopped like Martin at his high school prom, the longs are getting sucked into the market (via performance anxiety) and Daisy is getting squeezed because, well, she's hot!
What do I think? I think we're at the top end of the band tag and it feels a little trappy. Granted, if they can muster any kind of jig through the above mentioned levels, you'll see a manic panic. I'm not playing it that way--I've actually faded these levels with uber-tight upside stops. Shocking, I know, but I was patient this morning on initiating exposure and my risk is minimal and defined. Advice? No shot--just an honest opinion.
Watch Citigroup (C:NYSE), KLA-Tencor (KLAC:NASD) and the internets as sentiment tells as we find our way. I know a lot of folks are sitting this one out (ahead of the looming catalysts) and, as such, liquidity is pretty thin. That raises the stakes (both ways) and argues for slightly smaller position sizes if you're an active Minyan. Hey, just my one and a half cent.
Gotta hop, Rabbit. 3-1-3.
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