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Wings and Prayers


N's over S's!


Well, The Rain Exploded With A Mighty Crash
As We Fell Into The Sun,
And The First One Said To The Second One There
I Hope You're Having Fun.

(Paul McCartney)

The squiggles and wiggles continue to jiggle as we ready ourselves for a full day of giggles. In between the trading tickles, I've been fielding alotta questions about the "non-confirmations" and what it will take to color them gone. Simple--the techs would need to confirm the new reaction high (if and when) with similar strength. It's certainly not out of the question, mind you, but it's a good 60 (NDX) handles away.

I've been pinging back and forth with Professor Brodsky all morning on instant message (a conversation you'll be privy to as of Monday) as we discuss the current juncture. As always, there are two viable arguments in the near-term but it really boils down to momentum vs. resistance. The former has been fierce while the latter has been looming and one of them is gonna give. If we do, in fact, bust out, we'll need to monitor the breadth, volume, and leadership characteristics involved for signs of sustainability.

Early standouts include the biotechs (the BTK is sportin' acne) and the semis (firm on the heels of Broadcom's (BRCM:NASD) business outlook). The other sectors are relatively nondescript, Europe is flatlining (gave back gains), breadth is even and the gold/dollar duopoly is in nowhere's land. All the while, the tape is trapped between upside resistance (S&P 1160/NDX 1515) and the downside gaps (from yesterday's opening).

Finally, before I flip lids, I want to urge the Minyanship to read Jessie Eisinger's excellent article in the C-section of this morning's Wall Street Journal. It touches on the dark side of the deal frenzy and while we've heard (and seen) the positive spin, his take offers perspective for all involved. It's clearly not today's business but it's surely worth a gander when you find the time.

I'll be back.
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