Filling the Tank
I hate it when that happens!
I'm jamming, my friends, but I wanted to keep you up the best I can. The early reversal lower (led by the semicaps) has now filled the opening gaps. If (big if) the bulls are gonna make a stand, it's gonna happen right in here.
Once again, the S's are outpacing the N's, cousin Richard, and that can be seen by the breadth (3:2 S&P, flat Nazz), our tells (BKX vs. SOX) or the price action in the respective futures. Keep an eye on the biotechs here as well; they're acting heavy and they've been a decent indicator.
As discussed, I added some puts into the opening spike (and faded some QQQ/SPY) and I've used this (easier?) pullback to cover the E.T.Fs. With vols as cheap as they are, however, my inclination is to keep the puts and trade around them.
Why didn't I slip another leg into the fur? Because of the action in the dollar and bonds, basically. but there will be no regrets, baby -- that's wasted energy.
A little busy (ya think?)....gotta jump.
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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