Spill the Beans!
Not tonight, Hoofy, I have a headache!
We work our jobs
Collect our pay
Believe we're gliding down the highway
When in fact we're slip slidin' away
The crimson tide is riding high as we let out a collective sigh. Hoofy, while he sees the blood, believes he's still a bovine stud. Boo, who now is far from vain, can't shake the Snapper from his brain. If the bulls won't scare and the bears don't care, is that a reason to beware? I will say this, my Minyan clique, the dip shtick is now good and thick!
While today's tape is lacking traction, there is no panic in the action. The bulls will argue that this represents a simple (and orderly) pause that refreshes and, well, I suppose that they've earned the benefit of the doubt. Still, we must note that several trendline supports have been breached. That, coupled with the lopsided backdrop (bell curves and sentiment) warrants a discussion and (dare I say) respect.
We saw supply this morning (via the off board programs) and that, coupled with potential alligators, triggered this slippage. We must now weigh the quarter-end performance chasing potential (bullish) vs. the number of trapped longs in the market (clearly bearish). We've also gotta balance those trendline breaks vs. the fact that we're still migrating around the S&P acne levels. To add spice to the mix--like we need it!--Monsieur Beeks will be active tomorrow morning with durable goods (exp. .6%), initial jobless claims (exp.400k), new home sales (exp.6.05MM) and the HELP! wanted index (exp. 39).
I continue to harbor concerns regarding the "intangible" backdrop but, as we know, that stuff never matters (until it matters a lot). For instance, there is a huge disconnect (in my humble opinion) between the sentiment in the marketplace and the confidence in the administration. When, if ever, will that "gap" fill and, perhaps more importantly, will the hand stand allow it to do so? Things that make you go hmm...
And so it is, another day in the fray eyes the bell that tolls. We know that tapes that are weak (strong) all session tend to finish on their lows (highs) so, barring a brave and brilliant cameo by Snaps, I think Hoofy will spend the night lookin' pa nub. Speaking of which, congrats (and a free tee) to Chris Radigan for being the first to identify Mearth, played by Jonathon Winters, as the love child of Mork and Mindy. Nanu, Nanu!
Have a peaceful night and fare ye well into the close.
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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