"You can take a good look at a T-bone by sticking your head up a bull's ass, but wouldn't you rather take the butcher's word for it?"
--Tommy Callahan III, Tommy Boy
Does anybody else have a visual of Elmer in a cowboy hat, sportin' chaps and carrying a cattle prod? I sure do--and judging by Hoofy's initial reaction, he does as well. The jawbone junction continues as we speak and while it's certainly not over, traders are running for (and to) cover. That's the word from Flow's Diner, at least, where I continue to see size QQQ to buy. The zillion dollar question, my friends, is whether it feeds (on itself) or bleeds (into resistance).
Breadth has upticked in the S's but remains quite neutral in four-letter land (which I view as a negative given the backdrop). The most bullish action I can find continues to be the brokers as they're chugaluggin' and ursine huggin'. The piggies have also edged green and are now toying with BKX 1000. Funny how these big round technical levels seem to coincide, isn't it?
Boo mentioned a little factoid this morning regarding a potential pop and drop and, yes, that's still a distinct possibility. There's a case to be made both ways (in the near-term) so I'm weighing the alternatives accordingly. Bullish: brokers, improving S&P breadth, sticky SOX, reverse NDX dandruff and shorts around. Bearish: S&P 1150 and NDX 1515 (resistance), Nazz breadth, BKX laggy, heavy feelin' OTC price action and shorts coverin'. Those are the current facts, Jack, and I offer 'em up for your digestion.
Shockingly enough, I've got a noon lunch meeting and I'm juggling like never before. I can only ask for your patience and assure you that these meetings are in our collective best interest. You'll see soon enough, my friends, but the vice continues to grip as we helm the Minyan ship. Engine room, more steam!
As always, I hope this finds you well.
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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