I just LOVE minty breadth!
Now if I tell you that you suffer from delusions
You pay your analyst to reach the same conclusions
You live your life like a canary in a coalmine
You get so dizzy even walking in a straight line
The opening flurry jams in a hurry as put sellers flood the market with paper. No sooner did the bell swell than the QQQ put fellas start hitting bids. Not to feel left out, some S&P put sellers joined the party and further spurred the blur. As S&P and NDX eyed initial resistance at 1020ish and 1360ish (respectively), the gorillas tried to bust 'em through and trigger buy stops.
It's important to remember that Elmerfests are typically (almost always) divided into two sessions: B.E and A.E. While the Before Elmer environment is wiggy and jiggy--and nobody expects the Fed to do anything today--the After Elmer balls remain unknown. They certainly act good, cookiepuss, but if history is any guide, the potential exists for some serious whips after 2:15pm.
Keep an eye on the brokers as they appear to be breaking out above XBD 600. This sector has been the driest eye in the house the last few weeks and have acted as a tremendous tell. Unfortunately (or fortunately), the financials will also be the most volatile group after Elmer so please factor that into any decision making process.
Away from the piggies, retail is a bit sluggish and pharma trades a tad heavy. The semis have regrouped and are leading the sentiment charge, which is emboldening the beta chasers and leading to an N's over S's tape. Breadth, as you might expect, in minty (2:1 positive) but, again, that could change after Elmer eats lunch.
It's early, Minyans, and there's a lot of trading left in the day. Stay on your toes and wipe your nose...the fun has only just begun. Also, with three sessions left until our high noon animated announcement, Minyan Neal Greenberg remains at large and in charge.
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 email@example.com.
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