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The Press Guess


One way to play is to look for relative longs in the industrials vs. extended shorts in tech


The Minx springs to life and the dominant theme early is the flow. I've seen more than 3 million QQQ for sale out of the gate by macro hedge funds. There's two ways to view this: it's either indicative of a much larger picture on the sell side or the Minx is digesting the supply (constructive). Regardless, please know that these orders are floating around.

The other story this morning is the rotation thesis. I've spoken to multiple traders who believe the cyclicals are the place to be and that could lend to an S's over N's environment. It makes sense from a relative performance standpoint--the Nazz has massively outperformed this year and portfolio managers may look to rotate into less extended groups.

Early breadth is a bit stinky, with losers outpacing winners 3:2 across the board. The homies, internets, defense and metals are acting relatively firm while the drugs (Merck (MRK:NYSE), software (Checkpoint software (CHKP:NASD)), and semis are lagging. Meanwhile, NDX 1250 is (barely) holding, the bonds are slippy and Fokker has a "cat that ate the canary" look going.

Watch General Electric (GE:NYSE), the brokers, the semis and the internals as we edge our way through today's muck. Also, keep in mind that the last few post expiration weeks have been accompanied by equity hangovers.

I'm jammin' a bit so lemme hop...I'll be back.

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