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The Cat's Meow

By

Who's your daddy?

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Did you ever waken to the sound
Of street cats makin' love
And guess from their cries
You were listenin' to a fight?

(Grateful Dead)


The straddle battle continues as Hoofy and Boo tetherball around our big support levels. The bodacious bovine have had (thus far) staved off the ursine uglies and that's spurred a round of short covering. There sure are a lot of crosscurrents--the banks are buoyant, the semis are sluggish, bonds are all over the place and the breadth is noncommittal. Hey Fokker...this might be the perfect environment for Italian ices!

The clearest theme of the day is the S's over N's dichotomy. The financials have outperformed all day and, as they're the S&P pace car, that's allowed for a firmer tone in the old school. Across the fence, eBay (EBAY:NASD), KLA Tencor (KLAC:NASD) and the rest of the four-letter freaks continue to offer cause for paws. There's clearly supply out there--the question is whether the pressers will head for the hills if there aren't any spills.

There's a smattering of earnings next week but, for the most part, the meat of the lineup is behind us. That will allow investors to digest the recent inputs and position themselves accordingly. The variables in play? These technical levels (perception is reality), the famed second half recovery (economic validation) and the thin summer sessions (volatility exacerbation).

Speaking of which, today's gaunt tape is making for some whippy action and I'm seeing traders "gunning for stops" in the futures pit. The brass ring is still up for grabs, my friends, and regardless of the outcome, there will be ample reason assigned to the rhyme. Respect (don't defer to) the price action, remove emotion, define your risk and take it one step at a time.

As always, I hope this finds you well.


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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 todd@minyanville.com.

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.

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