Keep on rockin' in the free world!
The city is crowded, my friends are away
And I'm on my own
It's too hot to handle
So I gotta get up and go
Our Thursday session is edging right along and it's sticky hot in the city of critters. How hot is it? Daisy was walking down Main Street and her butterscotch thong melted completely off. Talk about a rump roast! Lucky for her, the bulls are uber-busy and she managed to cover herself up before anyone noticed. Whew!
A couple of macros bought a slug of Nasdaq futures earlier and caught the locals nappin'. That edged the NDX through yesterday's high and sparked a fresh round of squeezage. While NDX 1220 is the next level of resistance, a move through NDX 1240 would have more constructive technical implications. Over on the big board, the action is equally firm (2:1 breadth) but, as it stands, they've got some giggle room before yesterday's highs come into play.
Monsieur Beeks will swing by tomorrow with his take on personal income (exp. .3%), personal savings (exp. .2%) and the Wolverine confidence number (exp. 87.8). With Elmer out of the way, investors will be paying close attention for signs of economic firming. We haven't seen it yet, mind you, but the bulls are pinning their hopes (and performance) on some upside validation.
With that said, the psychological metric continues to be the force du jour and, as any decent therapist will tell you, there's a randomness associated with the human mind. When our super-duper-important support held this morning, it was game on for the "trend is your friend" camp and the price action (thus far) is an extension of that belief. It's worth noting, however, that while the trendline (from the March lows) is in tact, the near-term picture isn't as clear. The series of "lower highs" and the potential head & shoulders (never confirmed) is still "out there" and regardless of your posture, you always want to see both sides of every trade.
I'd be fibbin' if I said I wasn't looking forward to taking my first real break since December. There's a tendency in this business to not wanna miss the next big day. I've found that it's those exact times that we need vacations the most. As my friend Waximus always tells me, the Minx was here long before us and she'll be here long after we're gone. Take care of you and the rest will take care of itself.
Congrats to Andre Liu (no relation to Lucy) on correctly identifying the accordion as the instrument Sir Jerry traded for an electric guitar on his 15th birthday. For that, Dre, you've won your choice of a rockin' Minyanville tee! And, in the "you'd have thought he'd learn by now" department, John Lennon (no, not that John Lennon) and I invited young Fokker to join us for dinner tonight. His response? "Can't do it, got big plans." Uhh... will somebody please take the time to instruct the young nurse on proper office etiquette? I sure hope she's worth it, kid, because you've just been docked lunch for a week!
Have a peaceful night. my friends, and fare ye 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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