Good luck into the close!
"Here it goes: I sped. I followed too closely. I ran a stop sign. I almost hit a Chevy. I sped some more. I failed to yield at a crosswalk. I changed lanes at an intersection. I changed lanes without signaling while running a red light and SPEEDING!"
--Fletcher Reede, Liar Liar
The nutty buddy continues as we edge through the contra-hour and Hoofy's heroes are charging full speed ahead. There's something to be said for this massive momentum--actually, there's a lot to be said--but when traders get the fever for the flavor of a tingle, it becomes a mute point. Hey, forget blind optimism...welcome to the world of deaf optimism!
I rented some exposure this morning to play the game and have dutifully rolled my stops on those positions. At the same time, I've used this jig to nuzzle into a few more puts as I believe the autumn wind will be a Raider. The "market stuff" will likely go into the bell and I'll be left with a few situational longs against my put positions. There remains a ton of information due out this week and despite the structural influences, the bar of expectations has been set higher than Cheech.
JNJ (JNJ:NYSE), MEL (MEL:NYSE), Fannie Mae (FNM:NYSE)--no, really--Merrill Lynch (MER:NYSE), Wells Fargo (WFC:NYSE) will report before tomorrow's opening and Intel (INTC:NASD) will highlight the afternoon show. It's worth noting on Intel that we're currently edging through a gap that was established last summer and if there's fillage, it'll "work" to 27ish. The earning's (outlook) will clearly trump the technicals but toss that on your trading radar regardless.
I've been asked a few times if the S&P has broken out and the answer to that is no (or, at least, not yet). S&P 1015 has been a source of contention and according to Dorsey Wright's trusty charts, S&P 1020 needs to "tick" to confirm the bullish signal. With the leadership action on today's screen, it's easy to assume we're acne bound but the great thing about technical analysis is that it's emotionless. Let the charts talk tell you what's what and never anticipate the anticipator.
That's about it from my end and I'm gonna juggle hats and tickle ticks. I sincerely hope you all fared well today and, if you didn't, remember that we've got over 80% of the week left to trade. These weeks are always frazzly and if you let yourself get caught up in what you didn't do, you'll miss out on what you can do. And that, my friends, would be a shame.
Have a peaceful night.
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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