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Wabbit Season!

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May peace be with you!

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"I'm tired of men always coming and going, going and coming and always too soon. Vat am I, a rabbit?"

Lili Von Shtupp, Blazing Saddles




Another session comes and goes as traders start to eye the close. The Valentine daze is a lazy haze with the real action occurring outside the equity realm. We saw a similar dance last Thursday and openly offered that stocks should have rallied as a function of reflation extrapolations. While that was (and is) an admittedly simplistic observation (the lift arrived a day late), we can't help but wonder if we're now set up for a deja Boo?

Not a whole lot has changed since this morning other than the field position in macro land. With the dollar squalor (-75 bips), we're now retesting the vaunted DXY 84 level that was repeated resistance on the way up. Technical analysis 101 dictates that the time to buy a breakout is on the subsequent retest of the acne and, well, we're there now. And if the greenback gets grubby, it'll quell the metal swell and set up a very dicey dynamic for Elmer's Wednesday revival.

As far as the rest of today's session, there simply isn't an edge that provides an advantageous risk/reward. Hoofy will argue that S&P 1200-1205 provides a bovine backstop and Boo will counter that NDX 1540-1550 is resistance. Both are right, of course, although one of our critters is bound to be bitter. I will simply remind you that discipline is the common denominator of any successful strategy and it's not necessary to play every day, it's only important to have a high winning percentage on the trades you choose to make.

As always, I hope this finds you well.

R.P.
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