I got through the Gibson experience relatively unscathed!
Now leroy he a gambler
And he like his fancy clothes
And he like to wave his diamond rings
In front of everybody's nose
Good morning and welcome back to the acne shack. After two days away from the fray, it's time to again step up to the buffet. With bulls to the left and pork to the right, the Matador Crowd is feeling alright. "I told all the bears to please watch the banks," said Hoofy the bull, expecting some thanks, "but there was confusion throughout the ranks and ursine attacked while just shooting blanks! Can they find the spark to fight fire with fire or should they retreat and dig in a bit higher? We'll know soon enough, and there's tons now on deck, as we ready ourselves for some new minxy drek.
First things first, and as we pride ourselves on sharing the collective trek, I wanted to offer a quick recap of the Chicago Traders Expo. This was the first time we've stepped out to a do a bit of marketing and I'm proud to say that the critters stole the show. In what was an otherwise homogenous room, the Minyan mission stood tall as buzz and banter swept through the halls. I'm confident that benefits to ye faithful will manifest as a direct result and I want to thank Team MV for their all-star effort.
The jewel of the journey was the human capital that gathered in the windy city for hugs and handshakes. The gaggle at Gibson's featured a splendid collection of Minyans who swapped stories, bridged networks and shared smiles. Many thanks to the Kellners, General Fari Hamzei, Herb Greenberg, Brad Sullivan and Doctor Jon "you'll soon have a chance to pie me in Ojai" Najarian for their considerable vibes throughout the event. If this was a precursor to the "circle of trust" that we'll see at Minyans in the Mountains, we indeed have a lot to look forward to.
With regard to the tape, green grafitti was the writing on the wall as I climbed up to speed late last night. With acne all over the place--and pimples under the skin--the lopsided lean is gaining some steam and starting to feed the Matador dream. Price is the ultimate arbiter and this latest lift has emboldened the bulls while zapping credibility from the bears. It's a familiar story, I know, but one that will remain in play until the switch flips and profits slip.
As the tetherball tape has forced traders to "pick a side or stand aside," the price action is again knockin' on heaven's door. The S&P, having chewed through a longstanding low volatility range, is attempting to morph the former ceiling into a newfound floor despite the fright in certain circles. The bulls have been encouraged by the banks, which pushed through BKX 100 last week and have since paced the race. Those piggies remain a focus today as they digest Citigroup (not so hot) and Bank of America (headlines seem "fine" but arbitrage supply remains).
Other notable levels, which will serve as a framework as we digest the earnings avalanche, include DJIA (10,600), General Electric (testing resistance following Friday's report), TRAN 3570 and SOX 450 (initial support). To be sure, there are reasons for Hoofy to remain optimistic-inflation "perception" is toothless (despite the reality that surrounds us), psychology is confident (after the post-London bombing burp) and, of course, sitting in the back of Boo's crowded keppe are the inputs from Pepe Depew (who's been monitoring the stealthily strong action under the hood) and the Iron Horse (who's been right as rain on his interpretation of the action in corporate bonds).
I opined before I left that I expected some "turnaround Tuesday" consolidation followed by a leg higher (before the eventual reversal lower). The respite was brief (if not absent) as traders embraced 'no news as good news' and ran into this action packed week. They'll now have their hands full as we juggle a ton of earnings, back-to-back Elmer cameos and, at least for this morning, a post-expiration hangover.
Please keep close tabs on the breadth (which hasn't confirmed the upside of late), the aforementioned levels and your risk (active exposure should be defined). And think positive, Minyans, as profitability always begins within.
Good luck today.
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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