Shucking the Muck
The Nazz has taken a haircut but it's well above the all-important NDX 1450-1460 support
You love this town
Even if that doesn't ring true
You've been all over
And it's been all over you
The Monday morning yawning is officially in motion as we ready ourselves for a new week with the freak. As I'm sure you can tell, Team Minyan has been burning the midnight candle in preparation for the launch but, again, I think you'll like what we've done. While the Gazette is still the home of the sophisticated financial content, take a moment to download the Buzz & Banter alert feature. It's very cool and extremely user friendly, allowing Minyans to receive real-time educational updates without having to keep a browser window open.
Back to the tape...
After a full month of nowhere's man action--and repeated failures at the all-important S&P 1160 level--the chatter du jour is whether the Minx has stored sufficient energy to finally poke her nose through. We know from experience that repeated tests of resistance (support) eventually chews through the supply (demand) and, as such, levels weaken over time. If the Minx is gonna dance her upside trance--and put this debate to rest--she'll need strong breadth (absent Friday), stellar leadership (financials/semis) and newfound sponsorship.
The SOX is down 8% in the last month (while the overall tape is flat) and until proven otherwise, the techs, Russell 2000 and trannies are offering textbook non-confirmations (of new highs). That can change, of course, but the four-letter freaks better get their groove on if we're gonna mount this hump. In that vein, continue to monitor NDX 1515-1520 as a level in its own right. It was past support (January) and it's been a ceiling ever since while negative momentum divergences weigh on the tape.
Will the Elmer road show spur the herd? He's talking at the Credit Union National Association today, the Senate banking committee circle smirk on the GSE's tomorrow, the House budget committee Wednesday (don't forget the soap) and, finally, he'll be taking in a hoops game at Stanford University on Friday. In other words--or in Elmer words--be vigilant as you monitor our bespeckled Fed chief.
We power up to find the softer side of the greenback (still 'feels' as if it wants to "try" higher), gold grasping for gains, silver down a quick percent and Europe higher by 50-75 bps. I know you're all feeling your way through the new digs so don't hesitate to contact us if you've got any questions. We put a lot of elbow grease into this--whatever that is--but some tweaks surely remain as the paint dries. Thanks!
Good luck today.
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