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Slap Shot!

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Who's your daddy?

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It's no big sin to stick your two cents in
If you know when to leave it alone
But you went over the line
You couldn't see it was time to go home


(Billy Joel)

You want proof that there are, indeed, trading gods? Just as I posted my last column, my systems crashed. I'm not talking about a screen here or a screen there--I'm talking the whole shebang! So here I am, me and my bug Charlie (yes, I've named him), sweating out of my eyeballs, starving, with risk on and...poof! I could almost hear the giggles from above!

Alas, the power is back up and the first thing I noticed was the traction in the retailers. Yes, I'm dancing with two legs in fur right now but you always need to pay attention to developments in the market regardless of your posture. The action in the Wal-Mart's of the world stand out on the buy-side and we should file that away in our crowded keppe.

Why, you ask, did I slip that other leg in the costume? Whenever I see a light volume lift nestled in the midst of pervasive selling, I view it as contra-trend. At the time, the internals were still 2:1 negative, the banks and semis were down double digits and I sensed at least one 'try' higher was intuitive. With that said, that was then and this is now and, as I write, the shorts are getting hugged and squeezed pretty good.

With the market spiky like this, do I still plan on using an S&P 830 stop? Yes, I do (if and when)...but that doesn't mean I will elect it exactly on a tick at 830. Often times, when the market is on the move (as it is now), there are "tapes within the tape." In other words, I will maintain my discipline but, with the intraday stochastics as extended as they are (now), I'll likely count to ten before pulling the trigger,

Speaking of which, I gotta jump. Strange things are afoot at the Circle K. I'll be back.

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