The Bell Spell
I hate Mondays!
Far away across the field
The tolling of the iron bell
Calls the faithful to their knees
To hear the softly spoken magic spells
The Monday fray is well underway as traders trade and the critters play. The opening jig was intoxicating--breadth was superb, the financials were leading, global markets were participating and Hoofy was making reservations for a celebratory dinner (with Daisy) at Le Cirque. Alas, the Minx has now retreated and we're currently dancing on either side of the flat line. Opportunity....or ominous? Let's take a look...
We discussed the zones in play for each of the major averages and as it stands, we're still mired in that muck. The NYSE breadth is constructive, to be sure, and if Hoofy can keep the financials afloat, he'll retain the advantage into the afternoon. It's far from a given--biotechs are drippy, the trannies are having engine trouble and NDX 1480 continues to pose problems on the upside. Still, Hoofy will point to the series of higher highs in the S&P (since last week) and since he set his "stops" below (that level), he's enjoying the dip shtick.
I clearly have trust issues but I've been doing a fair amount of hand sitting as we meander through these zones. Most everyone I spoke to this morning thought we were gonna run from bell to bell (except you, Greg Ehlers) but I generally like to watch the openings (especially on Mondays). Sometimes you miss moves but most of the time you miss the emotion (fear of missing). And as we know, emotion is the enemy when trading--if you're whipping yourself around, take a giant step backward.
Jammin' a bit so I'll be back soon with the Randoms. As always, I hope this finds you well.
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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