Ho Ho's and Hummers
Wake me up when it's time to play, a'ight?
The Minx springs to life and, despite the downside pressure, it's interesting to note that none of my bullish friends are nervous and nary a bear (what's left) has gotten excited. It's truly ho-hum out there and, while I suppose there's an "inevitability" factor involved, I thought that it was interesting. Now Fokker--go to the freezer and fetch me some Ho Ho's!
The most interesting "thing" about the opening is the immediate slamming of the brokerage stocks. As we discussed this morning, these names are tricky traders and, to be honest, if I was long these names and saw those earnings, I likely would have been juiced. Instead, it's sell side city and that's weighing on the collective psychology.
The NDX is groping yesterday's lows (around 1060) and that zone should be monitored. If they scoot through, the next baby step support is at NDX 1040 (then 1025). For the S&P, I continue to hear the 850-855 zone being chatted up in trading circles although, in my work, 860 is a more important area.
An early check of the morning breadth is a bit dewey with losers trumping winners 3:1 across the board. It's VERY early, my friends, and more than one trader I've spoken to is expecting Snapper to once again bitch slap Boo (can I say that?). I'm certainly respectful of our resident tortoise (trust me) but I'm gonna continue to key off the banks, brokers and breadth. A'ight?
Keep in mind that expiration is tomorrow and that has two potential impacts. It can exacerbate volatility either way (exaggerate the moves) AND, also, individual stocks with a large open interest RELATIVE to the average daily volume have a tendency to be drawn to that strike. Kinda like a Minxy magnet.
Oh my gawd--Fokker just snorted. I'm truly embarrassed for him. He's a snorter!
I'll be back.
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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