Thank God it's Friday!
Well, the undertaker drew a heavy sigh
Seeing no one else had come
And a bell was ringing in the village square
For the rabbits on the run
Good morning and welcome back to the creaking crack. It's been a long week for those in the mix as traders attempt to juggle the bricks. With Elmer and Beeks and earnings to weigh, it's been a tough stretch in the Minxy Café. "They love 'em, they hate 'em-dude, make up your mind!" said Hoofy the bull of the tape intertwined, "I now find myself in a bit of a bind as the latest tech wreck begins to unwind." Can he once again uncover demand or will Boo's motley crew reestablish command? It's freaky, it's Friday, it's certain to thrill so dig in your heels for a romp through the 'Ville.
Google and Microsoft gave the Matador Crowd a double whammy last night as they didn't measure up to heightened expectations. As we know good news (that's not great) gets sold in extended tapes (and bad news that's not horrid gets bought in oversold markets), the Matador mission becomes one of containment. Yes, Yahoo! and Intel already offered ample excuse to tighten the noose but the twistage was not to be. It'll be interesting to watch the motivation of the supply after the initial and requisite Snapper attempt.
We touched on the two-sided ride yesterday and weighed the constructive trading metrics vs. the destructive big picture dynamic. It's hard to argue with the pure technicians who point to acne across the indices and the impressive breadth of the market. They'll be focused on S&P 1220, BKX 100 and SOX 450 (if and when), former ceilings that are newfound floors, and likely won't schvitz unless they fail.
At the same time, there is an unspoken pressure mounting as a function of compression and patience. Perhaps I'm paranoid but I can't shake the thought that we just picked a fight with the one kid in class who can beat us up. I don't know if being jilted by the Clamperts was the first or final straw but China is gonna focus on their own agenda. And when you have that many people working for peanuts, the ramifications for our once proud manufacturing sector (and currency) run deep.
Again, there are multiple time horizons weaved throughout this discussion and profitability will be predicated on our ability to unravel the travel. For purposes of today's trading, please keep close tabs on the internals, the financials, rotation (S's over N's), Google (expect a Snapper attempt) and the redhead from Redmond. And, lest we forget, we're a short skip from our requisite two-day respite so suck it up and stay focused. In seven hours, the shoes come off, the tunes turn on and the flickering ticks will be laid to rest.
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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