Crazy Like a Fox!
Hey Hoofy--your BREADTH smells great!
Well, Minyans, we got our opening fade as State Street Bank (STT) weighed on the BKX which, in turn, weighed on the S&P. The zillion dollar question--is this the "suck in" before going higher or the "rollover" off a spiky, expiration related opening? Let's go to the video tape.
The banks are the obvious red flag and the BKX needs to stabilize--not lead--for the broader market to hold in. If (big if) we're going lower, the financials will likely lead the way as they're the heaviest group today. The morning breadth, meanwhile, is attempting to shrug it off and it's being helped by a stronger dollar. Remember, Euro/Dollar support comes into play around 1.05 and while it may or may not hold, we should keep it on our radar.
Be conscious that stocks with a large open interest relative to their average daily volume have a tendency to migrate towards the strike. That dynamic will be covered at the University of Minyanville by....ah, you know what? I'll keep that one to myself for now. I don't want to overwhelm the readership with new additions!
Meanwhile, just a heads up, I've got my television tuned to FOX news as I feel it's got the best war coverage. I'll have a real dilemma at 12:15 when the Orangemen begin their (gulp) March march but maybe I'll just have Fokker call out the score real-time. I hope he doesn't snort again!
I'll be back.
ps- heads up--Warburg just downgraded AMAT
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 firstname.lastname@example.org.
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