The E-Ticket Ride
No salt here -- we've got a long way to go.
He roller-coaster he got early warning
He got muddy water he one mojo filter
He said "One and one and one is three"
Got to be good-looking 'cause he's so hard to see
Wow -- Boo musta snuck some Xanax out of the psychiatric ward with him! The early morning jig got tagged faster than a prize-winning bull, and Hump Day in Minyanville is underway. I told our resident bear that a "down" opening woulda gotten scooped and, as such, he shoulda been psyched to see the green acres. He wasn't in the mood to listen at the time -- he was mumbling something about a bad Applied Materials (AMAT:Nasdaq) -- but he's settling into the flow.
Speaking of flow, my trusty coverage flashed me with multiple sellers of QQQ and SPY out of the gate. There are surely buyers lurking, and until otherwise proven, we must RESPECT that they're out there. With that said, there's a whole heckuva lotta traders who own stocks because they act well and when the second, third or fourth dip occurs, it'll be gut check time for the bandwagon camp.
What am I doing? Manicuring, mostly. I made some disciplined sales into the opening and have relaxed my grip on the handlebars. There's no shame in admitting it's hard, Minyans. In fact, the ability to identify those periods will greatly improve performance over the course of time. For me, that means a little less day-trading and a bit more tactical deployment. I've got one leg in the fur and, until further notice, want to trade 'em that way.
A quick check of the morning breadth finds losers marginally outpacing winners. The semis, heavy out of the gate, have gotten snipped for a quick deuce but the Nazz "hangs" thus far. Meanwhile, biotech (and pharma in general) trade relatively dry (Millennium Pharmaceuticals (MLNM:Nasdaq)) and the networkers are attempting to assert leadership (Smith Barney upgrades).
Across the board, the early pop in the financials found supply and the banks are starting to sniff out BKX 800 again. The retailers are somewhat softer (retail sales) and they remain a good psychological consumer proxy. Finally, S&P 930ish and NDX 1140ish are trendline supports so toss those on your radar as well.
Our Minyanville poll is in full effect as Florence sorts through the bevy of emails. What are your five votes for the all-time WORST bands? Send 'em in to Fokker@Minyanville.com and keep the kid busy -- he's slacking off lately!
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 email@example.com.
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