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Skynyrds Inyrds

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Not the Archers!! The arrows cost money!!

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One little problem that confronts you
Got a monkey on your back
Just one more fix, lord might do the trick
One hell of a price for you to get your kicks


(Lynyrd Skynyrd)


The dust settles after the smoky open and the minx is starting to slip into her groove. While an initial rebuff from the upside snuff made sense (resistance is resistance), the tape got a tad trickier with an hour under our belt. Now it's time for the nitty gritty, where men are men and sheep are nervous. So ya wanna be a trader, cookie? Come with me for a swim in the muck.

With the jumpy action the last coupla days, alotta these charts have more gaps than a shopping mall. I happen to keep the S&P and NDX charts up throughout the day but I'd venture a guess that air pockets abound. The pullback from the opening heights started to alleviate the latest case of technical space but they're certainly still around. The question now becomes whether the true base (for a move higher) must be grounded without tiny bubbles.

Breadth, while still positive, has evened considerably and that, coupled with flat financials, is quelling the swell. The semis, as a group, hold their gains but my eyes keep floating towards Intel (INTC:NASD) for signs of chip slippage. The telecom tone isn't particularly impressive either (Nortel (NT:NYSE)) but the internets and cyclicals hold their gains. And, not to be forgotten, biotech continues its acne on the heels of further Biogen (BIIB:NASD) jig.

If you're not sure what to do, don't trade just for the sake of trading. The minx is in a relatively tight range (S&P 1150-1160) and will offer clues with a breach of either side. The bull case (Elmer accommodation, momentum, good fundie news) and bear chant (divergences, non-confirms, bloated bull camp) are fighting for the technical edge and there's gonna be alotta casualties on this one. Let's make sure that you're not one of 'em.

As always, I hope this finds you well.
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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 todd@minyanville.com.

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.

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