Leave emotion to the other guy.
Tooth for tooth, eye for an eye.
Sell your soul just to buy, buy, buy.
Beggin' a dollar, stealin' a dime,
Come on can't you see that I am stranded
Caught in the crossfire
Beeks swings by and turns the 'Ville on his ear with non-farm payrolls that blew away consensus. While the rest of the report was muted, the knee jerk reaction was to take, take, take equities and sell, sell, sell fixed income. With the S's up a dime (10), N's up a quarter (25) and bonds down a thrice (3), it's clear that investors are looking for the glass half full. As a matter of fact, and as a function of these moves beginning three minutes before the data was released, it seems as if a leaky faucet helped fill the glass!
These are toxic swings in the averages and there will likely be alotta movement left in the session. I'm gonna focus on the financials out of the gate as a back-up in rates may quell the green swell. If that happens, and while I understand that sector rotation will be all the rage today, it could dampen the giddy enthusiasm. Either way, there's a decent chance that N's outperform their old school brethren.
Boo has been focused on looming resistance (Dow 10,400, NDX 1460, S&P 1125/37, SOX 500) and the longer the Minx can stay above those zones, the more likely the tape will hold. That's far from a given (but a definite possibility) so please, Minyans, say tight and put limits on those orders. It's thin, whippy and emotional out there. The last thing you want is an unwelcome report from your faithful broker.
Financials. Breadth. Patience. leadership. Alligators. Bonds. Metals. Lots to look at, lots to digest. Fare ye well and let's end this week with some jingle in our jeans.
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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