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.
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.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter