NDX 1250 is the level to watch today.
Good morning and welcome back to the shark attack. The whippy water has been choppy of late and that's made for a lotta queasy critters. Hoofy, who's gotten used to swimming in the green seas, has been reacquainted with the red swell he once knew so well. Has the tide indeed turned for the bears that were burned? Or will the bovine opine that everything's fine? It's Freaky Friday in Minyanville and the fish are biting, so cast a line and let's push off!
Following Monday's gap opening (higher), a stream of supply has quelled the upside try. The law of averages dictated that it would eventually happen, I suppose, but the dynamic deserves discussion nonetheless. The rally from the March lows was structural in nature (liquidity) but, as we climbed higher, the "recovery discourse" gained momentum. Not only was the market "telling" us that a turn was at hand, but it implied that it would be a robust one at that.
As corporate America states there collective case, we've seen some glimmers of light. Granted, there was a lot more cost cutting than end demand (on the whole), but it hasn't been a complete and utter schvitz show. That's fine, all other things being equal, but we must remember that after a hard rally, good news that's not great is often greeted as a disappointment.
We enter today's session with the bulls convinced that this latest digestion is healthy. The bears, or what's left of them, continue to mumble and grumble that the worst is yet to come. You can count me among the latter but I'm also aware that today's expiration and Elmer's constipation will muddle the muck (after a string of losing sessions). To add spice to the mix, there's a vicious "intra-market" (sector) rotation competing with an "inter-market" rotation (allocation). Is it any wonder that traders are spinning?
In Minyanville news, I've heard chatter that an uber-big announcement will leak early next week. This "thing" (I hear) will be the biggest event in the history of our humble little town. It's being kept under lock and key, but the buzz is that it'll bring the film, finance and music industries together in the name of children's charity. I would tell you more if I could...but I don't want to get a whuppin!
Good luck today.
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