The Bangle Jangle
This is getting too easy!
It's just another manic Monday
I wish it was Sunday
'Cause that's my funday
An I don't have to run day
The Minx sprints out of the gate and earnings week in Minyanville is officially underway. The flurry hurry has been intense and the manic panic is in full swing. The banks are up a trifecta (BKX broke out above 900), the semis are being paced by the Intel (INTC:NASD) upgrade, the breadth is minty fresh and Fokker spaced on breakfast again. Dude, I've got one thing to say: The Breakfast Chronicles!
S&P 1010-1015 remains an important zone for the big board (June highs) and if they push through (and follow the banks), S&P 1040 becomes the zone to watch. It doesn't feel as if the averages will be denied today but keep in mind that there's a LOT of information due out in the days ahead. Further, with expiration looming on Friday, the volatility will likely be exacerbated (both ways) and the potential for whippage is high.
We spoke this morning of the structural influences and that's blowing wind into the psychological sail. The higher they go, the more anxious traders become as they climb aboard the "holy cow, this time really is different and I'd better get involved soon" train. We may be witnessing Mini-Bubble II: Revenge of the Herds but that won't be evident (read: sink in) until after the fact. Further, as we've learned over the past few years, these waves have minds of their own. As we wade our way through this period, I will ask you to do the same.
For what it's worth, I've left my fall paper puts on and have been trading the intraday tape with a long bias. I'm a big picture bear but on days like this, I'm apt to "rent" some upside exposure with uber-tight stops. I may not agree with the action (I don't) but this style allows me to stay and play. At the right levels, I'll scale gingerly with Mary Ann into a few more dollar kind downsides. Again, I think if there's to be a reversal, it'll come towards the latter half of the week and/or after July's paper expires.
In Minyanville news, we're edging closer to the big announcement and the beans will likely be spilled in a few days. The work we're doing with The Ruby Peck Foundation for Children's Charity is going to improve the lives of many kids and I'm schvitzing with excitement over this latest event. What am I talking about? You'll see, Cookie, and I promise you it'll be worth the wait.
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 firstname.lastname@example.org.
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