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A Henley Hangover

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How will the trapped longs react?

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There are stars in the southern sky
Southward as you go
There is moonlight and moss in the trees
Down the Seven Bridges Road


(The Eagles)

Well, I've gotta tell ya -- Greg RN really came through in a big way. I'm not referring to the inaugural Fokker Chronicles, I'm talking about these awesome fluffy orange Syracuse slippers (National Champs) he gave me for my birthday. For a guy who's traded barefoot for 13 years, it's certainly an odd feeling. However, in our continual quest for mojo, we'll try anything once -- and maybe twice!

The lack of any kinda Snapper on the opening emboldened the bears, and when S&P 990 broke, we saw sellers of the futures pile in. The biotechs (slammed on good news), Fannie Mae (FNM:NYSE) (specter of derivative concerns), expiration (removed protection), impressive year-to-date gains (locking in) and a soft Europe are all contributing to the malaise. Now, THE trendline from the March lows is within spittin' distance and if the Minx doesn't hold S&P 975ish (NDX 1180ish), things could get interesting for Boo.

A quick check of the morning breadth reeks of halitosis, as losers are drubbing winners by better than 3:1. Also, the banks have already confirmed a rather classic looking head and shoulders pattern (look at a 21-day chart). If (big if) THE trendline doesn't hold at BKX 850-855, there may be ample reason for more tears after all.

Could Snapper emerge and turn the tide? With all the crosscurrents in play, we can't rule out anything. However, with each passing tick of crimson, it becomes increasingly unlikely. Watch those levels -- they DO matter -- and keep half an eye on the breadth, biotechs and brokers for any signs of traction. And smile, will ya? It certainly could be worse.

As always, I hope this finds you well.
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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 todd@minyanville.com.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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