The highway's jammed with broken heroes
On a last chance power drive
Everybody's out on the run tonight
But there's no place left to hide
The morning news has sparked a cruise as the bulls rejoice the ursine bruise. There were whispers yesterday that the mother chip would flip (and dip) and their snippage of the lower end of the range was better than some pressy hedgies thought. That, combined with the Beek's tweak, sparked a bid and ushered in a spate of short covering. The question now becomes one of follow-through, technical levels (weekly highs) and volume confirmation.
A quick check of the morning breadth finds two green for each scream and a relatively broad based participation. The piggies remain my focus as I watch Citigroup (C:NYSE) and BankAmerica (BAC:NYSE) battle the forces of overhead supply. BKX 98 is still the technical ripcord as it's where we broke and past support is always future resistance. The brokers also warrant a mention as they opened firm and, while off their highs, are outperforming their money center brethren.
There are now more gaps than a shopping mall as the S's and N's both hoovered higher outta the gate. Those vacuums traditionally "fill" at a point although there's no guarantee that it's today's business. The first half hour is always noisy--particularly when emotion and catalysts crash--so understand that a "truer" tone and tenor should emerge as we edge through the day and towards the requisite two day respite.
On an aside, I got some goosebumps last night when young Billy Meehan told me that he showed the 'Ville to his mother and she said "it's a good thing Bill Sr. didn't see this thing as he would be on the Buzz all day!" Goosebump City for yours truly as Snoop Tone and I always used to say that the Swine (and I say that with love) was a true blue Minyan at heart. Hey--I gotta figure it's a good sign when Jr. walked into the office yesterday (his first day) and our television flashed to a commentator wearing a Hawaiian shirt! Cowabunga!
Fare ye well, my friends, and remember that emotion is the enemy while trading.
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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