The banks are the only cause for pause this morning.
The Minx ushers in a new week and the first order of business was a nifty fade by Senor Boo. To be sure, every trader I spoke to this morning was convinced that an upside breakout was imminent and obvious. When the initial attempt to mount S&P 1000 failed, a large S&P call seller emerged and created supply in the futures pit. That, coupled with drippy bonds and slippy financials, quelled the uber-early sentiment.
We know that Friday's advance, on light volume, shifted the focus from the floor (support) to the ceiling (resistance). The ability to hold (and advance on) those gains is Hoofy's mission in the rain. My eyes are migrating between the BKX (sloppy), the semicaps and telecom (firm) and the internets (sentiment). An early pulse beats to the tune of N's over S's.
Also, for those involved in the Government Sponsored Enterprises, please take a moment to read the Bloomberg story regarding the European Central Bank. I continue to feel that Fannie Mae (FNM:NYSE) and Freddie Mac (FRE:NYSE) warrant respect as a potential market catalyst. Keep 'em on your radar, Minyans--they won't matter until they do...but if (when) they do, the ripples will be far reaching.
I'll be back.
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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