If this thing doesn't turn soon, I'm gonna have to start punting my handbags!
Drivin' that train, high on Rogaine
Casey Jones you better watch your speed
Trouble ahead, trouble behind
And you know that notion just crossed my mind
(The Grateful Dead)
We've got a real battle going on here and it's got nuttin' to do with the Minx. James Goodman just stepped up and told Sean Mueller to head to an Av's game--he wants to go to Minyanville and entered a new bid of $10,500 for our charity auction! I'm not sure, Sean, but I think I heard him mumbling something about John Elway as he made the bid! Wasabi James!
Turning our attention to the babes of tickland, the N's and S's are both struggling to hold above the intraday lows as they're quite conscious that traders have set major stops there. In other words, if we break 970ish on the NDX and 819ish on the S&P, the sell-side could pick up in pace. What am I doing? I took a quick little schnitzel my S&P puts as my intraday stochastics worked off the sell signal (and approached an intraday buy signal). I've still got my defined risk (downside) paper in select techs and will continue to adhere to my stop (if and when). Just tradin', baby.
While our tells (breadth, banks, semis) continue to point lower, it's important to remember that there is huge headline risk out there. In other words, IF a headline hit the tape that there was a potential resolution to the Iraq situation, chances are you won't have a chance to buy 'em. Is that a reason to get long? Not in and of itself. Is that a reason to manage your short side exposure? Absofrigginlutely.
While I continue to feel that Iraq is being used as an excuse (ala electoral confusion, accounting irregularity, ect), don't kid yourself--the first move on a perceived alleviation of tension is higher. Remember, hedge funds are dominating the flow right now and they've got quick fingers. It's whisper thin out there and one headline could trigger a massive move. That in a nutshell (no, this is me in a nutshell!) is why I'm operation via options right now--it's definable risk.
It would be a shocker, Fokker, if Snapper shows up without sponsorship from the financials or semis (heavy all day) but stranger things have happened. Watch the internals for signs of traction, don't press or guess and remember, above all else, to think positive. My grandfather Ruby used to tell me that constantly and, one day, I finally got it. Wise words indeed.
I hope this finds you with a coupla shekels in your pocket.
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.
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