The financials should continue to tell the tale.
Like a moth to a flame
Burned by the fire
My love is blind
Can't you see my desire?
The morning nip continues to grip as traders try to get abreast of the situation. While the critters scan the landscape for actionable clues, Daisy has been particularly guarded during this daily dance. "Go ahead Fokker," she seethed, "make my day!" Uh, Greg...perhaps you should put that tongue back in your mouth and join me for a stroll through the 'Ville. There's lots to do...
The initial flutter was churning butter in the green fields until the 10am economic data. The orange crop report hit the tape with slightly weaker construction spending (.4 vs. .7) and ISM manufacturing (63.6 vs. 64). In both instances, the prior months were also revised lower. Initial breadth, which was minty, is now down across the board (albeit marginally).
My eyes have been continually drawn to the internets (for some reason) as they seemed "laggy" out of the gate. Those names, along with the semis, are pretty good tech sentiment proxies and leading indicators for the group. Further, I'm watching the Cisco disco (CSCO:NASD) ahead of tomorrow's earnings. The name has been down eight of the last nine sessions and I'm starting to see call sellers. This lil' stat is surprising to me but as ALL catalysts must factor in field position, it's worthy of a mention.
In Flow's Diner, I've just picked up a couple of size S&P sellers (just now) so let's see what kind of impact they have. Europe, for its part, is flatlining, Brazil is getting waxed for another 330 points (1.7%), gold is getting sold and is down a finski and Dubya is on the tube talkin' budgets. I will say this-- if my checkbook looked like Uncle Sam's, I'd be pretty freaked out right now.
S&P 1115-1120 is the next big support while NDX 1515 is the "best" upside resistance. I gotta hop, Minyans, we're jammin' a bit in the city of critters. Hit 'em hard.
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 email@example.com.
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