Fare ye well into the bell!
You can't go the distance
With too much resistance
I know you have doubts
But for God's sake don't shut me out
An afternoon drip is trying to grip and flip the good ship back to a green skip. The last coupla sessions have featured late day (mini) Snappers and that fact isn't lost on the Red Dye Crowd. Still, and despite several attempts thus far, the internals are pointing due south and tech (semis)isn't givin' pa nub. It's also interesting to note that this lethargy is taking place against a backdrop of the softer side of crude (-2%).
Today's tape--and the entire week for that matter--will be largely forgotten once the mother chip arrives tonight and Mr. Beeks takes tomorrow's podium. There has been some low level chatter that Intel (INTC:NASD) will be soft but my level of conviction isn't high. I am intrigued, however, about the double decker index wrecker that Tickle's mapped out this morning. If the semis and piggies can't lead the market, the Matador City committee might as well go home.
The Bureau of Labor Statistics will soon serve up some food for thought so please chew on it with a grain of salt. Consensus is for the unemployment rate to stick at 5.6%, average hourly earnings to be up .2%, non-critter payrolls to add 225k, manufacturing payrolls to add a hefty 20k and average weekly hours to arrive at 33.8. I am gonna ask young Billy Meehan to "earmuff" the last data point as he's gonna be skewing that number much higher in the months to come. I will also ask you to remember that this data is "cultivated" by the powers that be so do your homework before trading the headline.
The Iron Horse has extensively written about the potential reaction to the looming data. He's forgotten more economics than I could ever learn, so please take the time to peruse his last few posts. I've always found these types of catalysts to be dangerous--and potentially binary--but for what it's worth, I'm sticking with my recent vibe to trade 'em from the short side under BKX 98 and the other trendline resistance levels.
I'm gonna hop and jump on the Buzz for the ride into the bell. I would like to officially welcome Billy to the Minyan family and letcha know that our new energy professor will also begin shortly (he's very good). Day by day, brick by brick, critter by critter. And so it goes...
Good luck into the close.
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 firstname.lastname@example.org.
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