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Growing Pains


I hate those darn things!


A boy tries hard to be a man
His mother takes him by his hand
If he stops to think he starts to cry
Oh why


The nose scrunching continues in Minyanville but this time it has to do with the potential "bull trap" in the making. What's a bull trap? It's when an influx of optimists race into the market for the rally that never materializes--and they're caught long. I'm not saying this is definitely the case Hoofmo but, after yesterday's jig, it's entirely more likely than "straight down." You saw the size call buyers on the rush higher--now let's see if they wanna buy 'em as they're coming in.

My buddy Nipples (don't ask) pointed out the two-day trendline in the Spooz that was violated on this pullback and while I wasn't focusing on that, it's worth a mention. I was more focused on my 21-day S&P chart at the trendline we discussed in the earlier post. I'm also monitoring COMP 1320 in techland as the inflection point in four-letter land.

(Deep breath) Ok, So whatawe got? The semis, after their earlier relative strength, are showing signs of slippage and that must be monitored as a sentiment tell. With the weakness in the financials today, the Minx can't afford (literally) to have Red Sox enter the mix. Finally, the breadth has yet to visit positive territory today and that's been the best tell of all.

With regard to flow, Alice, I've seen a LOT of call buying and put selling (bearish) today along with some sizable stock replacements. That last input (stock replacements) will likely skew the put/call readings and make them look more bearish than they are. Also, I've begun to pick up overseas selling in the futures pit and while I don't know if it's an isolated order or the beginning of a trend, I wanted to pass it along.

I picked small near the opening but didn't put 'em back out into the lift. As discussed, I've got some defined risk downsides on and, other than that, I'm doing a bit less as it's unclear. There's no shame in admitting it's hard, my friends--it is. Just remember, if you only trade six times a year and win all six, you're headed to the Hall of Fame!

Speaking of all-stars, the Buc's fan from Tampa continues to bid $12,000 in our charity auction and he's sitting on top of the leader board right now. I've already dusted off the seat next to me, Daisy has picked up a couple of new outfits and Snapper is gonna break out his Sax! In other words, we're ready for ya and it's gonna be a blast! If you'd like some more information on Jacob's Cure, please visit the website at Thanks!

I hope this finds you well.
position in s&p, smh

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

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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