Good luck into the close!
Now my body is starting to quiver
And the palms of my hands getting wet
I've got no reason to doubt you baby,
It's all a terrible mess
The afternoon Minx continues to sink and the bears pour it on and the bulls stop to think. Indeed, Hoofy hasn't taken a beating like this since he put a banana down his pants and turned a monkey loose! Now, as we probe the lows of the day (with nasty breadth), it's crunch time in the city of critters. Let's take a look.
I've been eyeing the area under S&P 1100 for a counter-trend Snapper (in the context of a larger trade lower) but thus far, the action is all punk. With March put options six feet under, the stickiness that we saw Friday is nowhere to be found. To add injury to the insults, the NDX, Trannies and SOX all below their 200-day moving average. It's been quite a while since we've had some sustained volatility but we've got it now. DEFCON 3, baby--let the games begin.
As brother Reamer and brother Succo Buzzed earlier, there's no shortage of explanations as to why we're lower. The most common seems to be the terror card and while there's certainly an element of risk premium being injected back into the tape, that's more of an effect than a cause. The simple truth is that a disconnect emerged between perception and reality. Until those two elements juxtapose, the choppy and sloppy action will continue.
I've gotta hop--Microsoft (MSFT:NASD) news just hit the tape and I'm involved--so lemme get this post to you while I can. The rest of this week is gonna be pretty hectic for yours truly so apologies in advance for post laggage. If I don't get another post out before the critters and I hit the road, lemme take this moment to wish you all the very best of luck in the week ahead.
And 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 firstname.lastname@example.org.
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.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter