By Todd Harrison May 18, 2004 3:44 pm
May peace be with you!
Money's tight, nothin' free,
Won't somebody come and rescue me?
I am stranded, caught in the crossfire
Stranded, caught in the crossfire.
(Stevie Ray Vaughan)
The afternoon brawl is scrawled on the wall as the bears dig in deep and the bulls all stand tall. It's been a Sammy slither for the better part of the session as the derivative types toss merchandise to and fro. We've talked about the insane levels of negative gamma in the marketplace (English: traders get shorter higher and longer lower) and, thus far, it's been a push. That is music to the dealer ears as the dripping sound you hear is the premium slowly melting in the Minxy heat.
Is this the beginning of the most telegraphed bounce in recent memory? Perception is reality, I suppose, and if enough folks put their money where their mouth is, it could last a bit. Still, I would remind the A.D.D types among us (present company included) that A) a lot of technical damage has been done B) Carrie and Fanny are BFF and C) geopolitical uncertainty looms (and it's not going to abate). Perhaps that's what walls of worry are made of but it's also what triggers trap doors.
Applied Materials (AMAT:NASD) and Hewlett Packard (HPQ:NYSE) will headline tonight's news items and will likely color tomorrow's tech action. Still, I would rate the structural and psychology metrics 1-2 in terms of importance and, unfortunately, they're also the most abstract. I have little doubt how it'll shake out in the broader scope but in terms of the day to day, it's jittery, emotional and, thus, difficult to measure. As it stands, the lightest volume day of the year is simply lifting us back to established resistance channels.
I'm gonna hop such that I can get this out to ye faithful before thy closing bell tolls. Make decisions consistent with your unique risk parameters, define your time horizon and, above all else, don't bite off more than you can chew. The only way you can work to live is if you're not thinking about work around the clock. Balance, Mon Frere, will lead to better and more profitable decisions in more ways than one.
Have a peaceful night.
No positions in stocks mentioned.
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