One of the by-products of writing a real-time column is that it's subject to the human condition. Moods, situations, ups, downs, wins, losses--it's a function of the game and, more importantly, a part of life. It's been a trying morning in the city of critters as I'm digesting some disturbing news. I'm always honest with the Minyanship and, as such, I had to tell you. With that said, please work with me as we navigate our way into the weekend.
The blip (on the Wolverine miss), rip (perception that it doesn't matter) and slip seems to have surprised the momentum types who have been conditioned by the dip shtick. It's entirely too early to pen the equity epitaph--we've seen that movie all too many times--but it's worth noting several elements that have emerged. Most notable, from my perch, was the immediate weakness in the semis (despite a "robust" Analog Devices (ADI:NYSE)) and the lightening quick reversal in breadth (2:1 positive to 2:1 negative).
Hoofy will argue that the financials remain relatively firm and he's kinda right (so far). The banks and brokers have been the lynchpin of support for the broader tape and, as it stands, they're braving the crosscurrents. Still, with the market now meandering below S&P 1150 again (and lotsa traders loaded to the long side), we've gotta be diligent and vigilant in our risk definition. As I said yesterday, I'm in the failed rally camp but I'm humble enough to respect the fact that I could be dead wrong.
S&P 1140 (1120ish) and NDX 1460ish is next support. Good luck, Minyans...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 firstname.lastname@example.org.
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