Box of Rain
Good luck into the close!
After all the jacks are in their boxes
And the clowns have all gone to bed
You can hear happiness staggering on down the street
Footprints dressed in red
The afternoon swoon continues to croon as anxious traders now have started to prune. Our resident tortoise is nowhere to be found and, at this point, I'd be surprised if he peeked his beak out. The breadth smells horrible, the tape has been fugly all day and the dollar has shown few signs of traction. Couple that with the recent thwart of trendline support and you have the ingredients for turtle soup.
The more important question, in my estimation, is whether the crimson tide will continue to ride. These dips have been "one and done" all year and the bulls have an overt agenda (and a helping hand) to keep the balls in the air. As discussed in this morning's post, Mr. Bubble is gonna be trouble but nobody knows how far he can grow. Could this dip be a blip on a much longer trip? Sure--Hoofy will argue that this is the same script we've seen all year. With the collective view this far skewed, however, the consensus will only build for so long.
As it stands, a bad seed has been planted in the garden of hope. The next (visible) catalyst is tomorrow morning's earnings parade. A handful of major brokers will state their case, pace the race and provide a good tell for the Tuesday tape. As far as today's flow, there's been a few pressers in our midst (trying to break the tape) but, by and large, I would characterize the tone as a subtle lack of buy interest (and some expiration hangover). In other words, the longs are still long and don't think they're wrong.
I'm gonna jump and juggle as we edge towards the close, so please forgive me for cutting this post short. I sincerely hope that you've all found some jingle in your jeans and, if not, that you've found the balance to maintain perspective. It's not always easy to find but, once you do, it'll be the best discovery of your life.
Have a peaceful night.
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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