South Side Story
May peace be with you!
The storyteller makes no choice
Soon you will not hear his voice
His job is to shed light
And not to master
The afternoon tape is starting to scrape as the bovine look for an escape. We were hummin' along nicely and digesting the sloppy semis when--out of the blue--crude spiked over 3%. I'm diggin' for information but other than the requisite pipeline chatter (terror concerns), I've dug a dry hole of my own. Regardless, the poor camel that is this market doesn't need many more straws on her back!
The story of the day is the 10% haircut in Intel (INTC:NASD) and the anchors that are the semis. I opined yesterday that there was too much focus on the mother chip and one stock does not a market make. I obviously underestimated the influence of this bellwether (mea culpa) but the shabby news, on top of KLAC's back, has spilled the beans. And while i can't confirm that there is "forced selling" (liquidation) in the group, it's pretty clear that they're under distribution (25% off January's high).
Hoofy will counter that the tape acts tremendous given the high heat and, I suppose, the bull has a point. The risk to that argument (buying 'em because they act well) is that the only way you know if you've lost your catalyst is when the tape has already belched. I'm not saying he's wrong, I'm just urging him to apply a methodology that defines his risk. The dip shtick isn't gonna stick one day and when that happens, we'll finally see fear that isn't related to missing the upside.
Beeks will serve up the PPI tomorrow along with a truck full of earnings. While we're certainly due for a Snapper, there are enough broken charts and hoping hearts to justify continued lethargy. I may not be offering the directional vibe some are looking for but I can only offer what I see, feel and hear. The market trades confused and reactive and that, coupled with Friday's expiry, makes this one of the tougher junctures to judge.
I'm gonna hop to the Buzz before hitting the eject button before the bell (midtown meeting). I sincerely hope that you're all finding your way and maintaining perspective (easier said than done). A special thanks to ye faithful who took the time to help out one of our own. There are a lot of good Minyans out there and as long as we stick together, we'll find our way through this fray. Together.
Fare ye well into the bell.
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.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter