Hot for teacher!
I get up, and nothing gets me down.
You got it tough. I've seen the toughest around.
And I know, baby, just how you feel.
You've got to roll with the punches to get to what's real
The morning juice begins with a goose as the bears cover up and the bulls fit the noose. While my (eight) screens are vibrating with green, we saw the initial tickle lower vs. the opening spike. Now, as we trudge through the muck, we've got some very defined gaps sitting below the current levels. Today's business? Not sure. Will they eventually fill? Pretty sure.
Speaking of the jump and dump, the transports are screaming for attention out of the gate. Higher fuel costs? Rotation to other groups? Non-confirmation? Yes, yes and yes, most likely, and it stands out like a throbbing sore thumb. The internets have also come for sale, relatively, as has the storage group and defense. Fighting the fray the other way, the brokers (financials) and breadth (2:1 positive) are making the bull case.
The early spurt has brought the NDX back to 1500 and it's "doing work there." If she can giggle through, NDX 1515 remains resistance as it was last week. In the old school, traders continue to focus on S&P 1160 and lotsa stops are prolly set at S&P 1165. I saw a ton of short covering on the opening, as you might expect, and it's now time to settle in for the daily dance.
Professor-to-be Roney pinged me to point out that the last eight times the S&P futures opened .5% or higher, they closed lower than the opening print. Not sure if it's actionable but it's certainly interesting and not suggestive of a runaway train. We haven't seen any motivation on the sell-side but I will offer this- if the techs don't participate (lead by example), the tape is gonna have a tough time busting out to new highs. Just one trader's humble view.
I'll be back.
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