Just listen to the music!
Sugar Magnolia blossom's blooming
Head's all empty and I don't care
Saw my baby down by the river
Knew she'd have to come up soon for air
The morning groove is on the move as the bulls seem to have something to prove. The conditional elements for a Snapper were mapped out this morning--firmer bonds that buoyed the financials which, in turn, spurred the tape. Thus far it's N's over S's--Cisco (CSCO:NASD), the semis and biotech saw to that. But the tape didn't really catch a bid until the homies, piggies and brokers tagged along (the utes continue to lag).
Breadth has improved (9:5) and there seems to be a collective sigh heard 'round the Street. We're far from out of the woods, mind you, but the stochastic set-up for the SOX and BKX bode well for some further folly. On the charts, the ability of the Minx to overcome the S&P 1116 and NDX 1440ish hump will likely spur some newbie shorts to head back to the hills. Again--remember how it felt during the melt and play your hand when the cards are dealt.
The macro landscape is fairly quiet with the dollar and primary metals thetherballing as the DXY (dollar index) dances at the 200-day. Europe (or the "open" Europe) is improving a bit on the heels of the stateside jig and fixed income is higher despite an inflationary "prices paid component" of the ISM. For my part, I remain quite cautious for the big picture but have been allowing for some Snappage before Boo potentially takes the Con. Citigroup (C:NYSE) will help me navigate as to when that time will arrive.
Finally, I'm still balancing the flickering ticks with some personal issues so please understand if the usual verve is absent from my writing. I've always been forthright with the Minyanship (and will continue to be) so while I won't get into specifics, know it's out there. This column has always been a refuge, of sorts, so rest assured that I will do everything in my power to hold it to the Minyan standard.
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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