I hate Tuesdays!
Fish don't fry in the kitchen;
Beans don't burn on the grill.
Took a whole lotta tryin'
Just to get up that hill.
Good morning and welcome back to the shiny shack. It's a snazzy fresh day for the critter soiree as we dig in our heels and shape some new clay. Our much anticipated office move crept into the early morning and, after a valiant effort from Team Minyan, we're officially operating from the new digs. Many thanks for the "above and beyond" energy from those involved and sincere gratitude to ye faithful for your continued patience. Our operating capacity has now expanded and I trust you'll see the fruits of our labor in the months and years ahead.
While I'm itching to share the arrival of our snazzy new Managing Editor, we'll gonna hold off on that news until tomorrow. In the meantime, we're pleased to announce that we've opened the doors for Minyans in the Mountains II. Our financial retreat will be held in Ojai (near Santa Barbara) the weekend of August 18th-21st. Moderated by Minyan Mike Santoli, this "Sundance of Finance", will highlight the human capital that makes Minyanville so unique. Our steady stable of fantastic scribes, along with a litany of your fellow Minyans, will be joined by sages such as Jeffrey Saut of Raymond James and Steve Shobin of Americap Advisors. As we ready for our financial future, I believe this retreat offers a compelling opportunity to prepare ourselves for what's to come.
Turning our attention to the flickering ticks-yes, that's still our prevailing M.O.-we enter today's fray with a happy Hoofy and a bummed Boo. The bovine beast is on a roll of late and has mounted resistance after resistance in an effort to impress the fence sitters. His latest conquest was S&P 1192, which propped the chop above April highs. That aligns with the technical set-up in the BKX (basing above the 200-day), the semis (SOX above 420), the XBD (above 145), the DJIA (above 10,400), the NDX (through the stealth trendline) and the Russell (recently mounted the 50- and 200-day) as constructive technical patterns. Only the CYC remains as a main sector still stuck in the muck under double secret resistance.
A few caveats in the heart of charts. First, as we know, this metric is inherently flawed as it supposes that stocks (indixes) are "better higher" and "worse lower." That was a point of contention at our uber-mindmeld but I've never been able to embrace the idea that higher prices equal better value. Second, while tech has jimmied through the aforementioned trendline, the old school proxies (DJIA and S&P) have yet to mount their comparable humps. Finally, turning to the oscillators, my trusty stochastics are triggering sell signals across a spate of sectors. They're clearly not timing mechanisms (please see Google, which offered a similar sniff at $220) but it's certainly worthy of discussion as we piece together the ever-changing puzzle.
After a string of smiles, my sense is that Hoofy will have some tough sledding today. It is, after all, Turnaround Tuesday and that dynamic tends to manifest after a series of one-sided efforts. The task at hand for the bovine command is to buffer the rough stuff, much as they did during Friday's soft chop. With the tape thin and thinning into the holiday weekend, my sense is that a few gorillas are licking their chops as they eyeball the skeletal staff on the street. That could lead to outsized moves in the days ahead and, potentially, into next week as well.
I'll be heading west on Thursday to vibe with my mom in her new Santa Fe dig. After spending her life raising two boys (and a slew of latent critters), she's decided to follow her own dream. She's an uber-talented artist and has begun to sell her jewelry in the open-market. As we measure ourselves by the family we are and the friendships we offer, spending a long weekend together is a no brainer for yours truly. I'm very proud of her and look forward to the step back, a deep breath and some desert reflection.
Good luck today.
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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