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Terrapin Playstation

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Who's your turtle?!?

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While the firelight's aglow
Strange shadows in the flames will grow
Till things we've never seen
Will seem familiar

(Grateful Dead)

It's whites of the eyes time in the city of critters and Snapper is trying to get his groove on. If you listen closely, you can actually hear the shorts squirming. I've been there and trust me, it's an awful feeling. Still, we must assess the collective mindset as we attempt to craft a navigational strategy. The price action, when broken down to it's most basic definition, is a function of supply and demand. If there are nervous shorts out there and they're getting squeezed, it'll likely exacerbate the near-term upside (while removing a future layer of demand).

I've got three day charts up of the NDX and S&P and the most recent lift took us through the downtrend line in the N's at to the same line in the S's. There are also short-side stops set above S&P 800, most likely, and if the Minx continues her jig, it'll likely spur another round of short covering. Finally, understand that S&P 806 (the previous February low) will likely act as a resistance as well.

What's caused this turnaround? There's chatter that the Europeans have pulled their sell orders although I have no way of knowing if that's true. More likely than not, it got a tad too negative and pressy--and when the banks started to turn, it freaked out Boo's brethren. Am I fading (read: selling) this rally? No--I've actually been schnitzeling some SPY from the long side but I'm staying VERY tight and will likely go home flat.

I've gotta hop, juggle and dance--hang in there Minyans, less than an hour to go.
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