The Marching Band
Discipline over conviction!
I can tell your future
Just look what's in your hand
But I can't stop for nothin'
I'm just playing in the band.
Talk about a spike, Lee, that 10:30 pop was champagne worthy! The rhymes I'm hearing assigned to the reason include chatter that tomorrow's data was leaked early (unlikely), a story that Saddam stubbed his toe (hopeful) and speculation that alligator walked into the swamp (possible). Regardless, the run gunned the Minx to S&P 1000 where she's currently taking a lay of the land.
Making my calls around the street, the cash desks continue to be relatively quiet. They could be a function of the recent range and investors wanting to see a definitive resolution. If we close above S&P 1000, the pennant formation discussed this morning will have been breached. The mamaluke number remains S&P 1015, mind you, but this should also be on your radar.
Lest we forget, today IS month end, and that always has the ability to add spice to the mix. While the smarter fellas I speak with are "laying into this," I'm also seeing a fair amount posturing by the bulls. In their eyes, this is textbook action coming out of a basing period and they've already begun their end zone dance. I will say this--it is a very important juncture in terms of both time and price.
Tomorrow's data looms and, with it, the possibility of posturing exists as we approach the close. Keep your eyes peeled for NDX 1315 and Dow 9355 (previous highs), monitor the bonds (yields rising), define your risk (when possible) and above all else, remove emotion. These thin and whippy sessions can have some bite if you take your eye off the ball.
I've got some afternoon meetings today and will be away from Minyanville tomorrow. Stick to your disciplines as you navigate the muck and take what the beast will give ya. More importantly, do what ya gotta do, such that you can focus on the important stuff. When away from the fray, you've gotta enjoy the day.
Fare ye well.
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 email@example.com.
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