The Sapp Trap
Under a blood red sky....
My hands are tied
My body bruised, she's got me with
Nothing to win and
Nothing left to lose
No, Minyans, the above lyrics aren't a reference to Warren Sapp dressed in a gimp outfit (in the basement)--THAT is a bad visual--it's simply honoring Mr. Buc's affinity for U2. While sitting here and walking through the trading process, Charlie noticed the signed U2 guitar and mentioned that they were his fave. A moment later, Bono's crew is on the tape--and Marsellus Sapp escapes the red rubber ball!
You want tied hands? Try trading today's tape! The financials are following the bonds (higher) and "feel" like they want to lead by example. On the other side of the fence, the Red SOX are an absolute schvitz show and that's sucking tech into the abyss. Breadth is flat, gold is starting to rip, crude is soft and--are you ready for this?--I think Fokker is legitimately jealous! Fokker Kahn!
What do I think? I think I'm ready for the weekend. I also think the Minx has already seen her highs of the year and the path of the righteous bull is beset on all sides by the inequities of the selfish and the tyranny of evil bears. I've spoken to a handful of fund managers who "want to" get short but sense that tech is getting oversold. I told them--as I've told you--that the trippiest slips typically exist in those conditions. That doesn't mean it will--but it certainly doesn't mean it won't.
Keep a keen eye on Mr. Q if it starts to tick with a two-handle. For those who don't understand me--which is probably most of you--I'm basically saying that if the QQQ breaks 30, it could also break psychology. Alotta fahginas are keying on that level and using it as a stop. With that said, the Minx won't melt with firm financials and, while tech is drek, the banks and brokers hold the key to the vault. The tenor is clear (S's over N's)--we've just gotta see who's got the Mott's.
Pay close attention to the bonds. If they start to slip, the financials will follow suit and this session could get fugly. If they stay firm and the BKX (and retailers) holds their bid, it's likely to be another grindy bind into our two-day respite. I've got Sir Charles here for another couple of hours (the sushi just arrived!) before Snoop Tone takes him to Fox for his television spot...and I'm counting the minutes to my hugfest with the kids. That is, quite simply, as good as it gets.
As always, I hope this finds you 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 firstname.lastname@example.org.
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