Red Skies and Blue Traders
Action like this makes a snake want to hide under a rock!
In the howling wind comes a stinging rain
See them driving nails
Into the souls on a tree of pain
Well, they say the Minx likes to creep up when it's least expecting and, outside of a furry little wiseass we all know and love, I haven't spoken to many traders who were set up for this downdraft. Furthermore, this has got to be one of the quietest sell-offs in recent memory and one of two things is clearly happening. Either they're sucking in the bears ala early November or this is the beginning of the end and the Razor Burn thesis is flexing its muscle. Welcome to Minxville, baby, population YOU!
The S&P 895 level is being probed deeper than Mr. Babar at his annual checkup and if Snapper is gonna make a cameo, he'd better start stretching his legs. As you know, tapes that are heavy all day typically end that way but we must always put an asterisk on that thought when the tape is oversold and sitting on support. As it stands, the NASDAQ has already been violated although, with the SOX down 20% in a straight line, it's hard to put 'em out here. That statement, in and of itself, is overtly bearish!
The conference parade continues to march through Minyanville tomorrow and we'll also gain some insight in semi-land and the wireless sectors via mid-quarter updates. The trick to these updates is understanding that companies are telling us how business is versus the market trading on how business will be. That, in a nutshell, is why the news was so bad at the October lows and why the tape recently sold off into the teeth of some overt upticks. Just another feather for your trading cap as we settle in for the home stretch.
As I'm sitting here, a couple of macros just walked into the pit and lifted offers in the futures so let's see how the thin tape reacts. As you know, I've stuck an S&P 905 "buy stop" on my bear appendage which, for the trading neophytes among you, means that my trade is "covered" if that level is triggered. It's just one of many different trading styles that I hope to share while we dance the waltz together. That's the beauty of Minyanville-we can educate while we work.
I've got to scoot on the closing bell today so I will definitely try to sneak out one more post before then. Lemme hop (no pun intended) as the ticks are beginning to flicker a bit faster. I hope you're jingling today.
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