The Gasping Grasp
May peace be with you!
Sugar magnolia, blossoms blooming
Heads all empty and I don't care
Saw my baby down by the river
Knew she'd have to come up soon for air
The after fling is doing her thing as the ursine bum and the bovine sing. The quiet riot began the session as an extension of yesterday--lethargic and uneventful--but a 4% oil spill and some snazzy internals paved the way to Boo's dismay. Now, with the screens green and the herd spurred, we've got a few decisions to make into the closing bell.
Today will be a particularly important close as BKX 98 is in jeopardy of being breached. This is an uber-important technical zone (former support/current resistance) and that fact isn't lost on the bulls (or bears). With the stochastics so extended (they can continue to twist), a failure into this ceiling is textbook. The question is whether it's too telegraphed and, as such, much too easy.
Lest we forget, tech fundies remain under the gun and my latest checks indicate that this quarter is extremely back-end loaded. That may not matter as we're officially in a period void of information (hence the "quiet riot") but we shouldn't discount it altogether. While this metric officially rotated to the bottom of the metric pole--and macro influences dominate the headlines--I sense that lotsa big cap technology companies will struggle to make their numbers. Again, it could be out of sight and out of mind until after Labor Day, but it's worth a mention as we trudge ahead.
I'm gonna jump the hump over on the Buzz so lemme take this time to wish ye faithful luck into the close. Keep an eye on the frisky financials and "see" the tranched resistance from here (50-day moving average) on up (through 1120). That doesn't mean we can't power through--we can--but if you were choking on exposure a few weeks ago, remember that feeling if you're reaching for stocks now. Just a thought and offered with the best intentions.
Fare ye well into the bell.
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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