The Eye Ball
Nobody ever asks ME to do holiday parties!
No one knows what it's like
To be the bad man
To be the sad man
Behind Boo eyes
The opening jazz lacks pizzazz and three thoughts immediately pop into my head. First, textbook technical analysis dictates that when a stock (index) breaks out, the "right" time to buy it is on the retest of that level. As such, it'll be quite interesting to see how the S&P trades if/when it gets to 1060-1062 (there are likely lotsa stops below). Second, the breadth is noticeably lag this morning (3:2 losers/winners) and that's a marked difference from what we've seen. Third, Daisy is not available for holiday (or bachelor) parties so please stop the requests--she's booked!
One more step down Granular Ave. shows retail soft (with the exception of the crowded Kohls (KSS:NYSE)), the semis a bit softer (in front of National Semi (NSM:NYSE) and Intel (INTC:NASD)), the brokers slightly pink, Cisco (CSCO:NASD) holding onto most of its early gains, and the dollar trying to scrape back some of its recent (and constant) funk.
Yesterday's reversal was bearish on a few counts (outside day in the S&P and a doji-san reversal) so probes lower (at some level) make sense. Again, until S&P 1060 fails, there will be little schvitz on the bovine lips. If you're a bull, you can lean against that level (with everyone else). If you're a bear, you can use the upside band tag as your backstop. Either way, stay disciplined and don't believe the hype.
I'll be back.
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 email@example.com.
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