Randoms: Bears Rush Out of the Gate
Early action has Boo's Crew in control.
Editor's Note: The following was posted in real time on our premium Buzz & Banter (click for a free trial). It's being shared here for the benefit of the Minyanville community. See also Blinded By the Light!
Gate Sniffage! - 9:44 am
- On the opening, my eyes flickered between the potential BKX reverse dandruff and the double secret resistance in Apple (AAPL).
- While that script is still being written, my initial trade was an early fade, buying some FAS (entry level $6.54) with a trailing stop. I figure we'll see at least one pop before the flickering ticks settle in and, if not, my risk profile is tight and defined.
- MV C.O.O. Ike--aka Tom Eggers--walked into MVHQ this morning with a spankin' brand new Jack Bauer tee shirt. T-minus 11 hours, baby, dink, dink, dink...
- Green beans in the red sea? Pharma, which has "room" to neckline resistance at DRG 260, United Health (UNH), Research in Motion (RIMM), Amgen (AMGN), as well as General Motors (GM) and Ford (F), no doubt on the heels of the Michigan State sentiment.
- Speaking of dandruff, check out the VXO, which is a mainstream angst indicator. If that was a chart, how would you trade it?
- Jammier than a Smucker's factory--plus, this is time sensitive stuff, so lemme get this in front of ye faithful. Hit 'em hard--and hit 'em where they ain't!
Fists and Docs! - 10:37 am
With the smallish out-of-the-gate Snapper in our back pocket, I slapped a fitty cent trailing stop on that FAS effort. While it feels like Boo wants to turn further screws, setting stops always removes emotion. And emotion, as we know, is the enemy when trading.
Over in Tea Leaves R' Us, NYSE internals are 3:1 negative, commodities are lower and the dollar is higher (think Wishbone). In addition to the dry action in pharma, please also note the relative traction in the consumer non-durables, which Pepe flagged a few weeks ago as a relative strength sector rotation candidate.
Speaking of relative strength, I can't tell you how impressed I am with the Maven. She's got that Rubyesque energy in her and I was infused and enthused by the time my short stint was over. 89 years young and she's still got that mischievous gleam in her eye.
Keeping the vibe in the family, Television's JeffMacke® is turning 40 tomorrow and we're gonna celebrate with a beefy steak and some fine wine. Seeing old friends--although 40 isn't really that old--is always good for the soul. Giddy up.
At what point is this pullback no longer healthy? S&P 810ish is worth watching on that front (gap fillage) and, as with the BKX, we should keep our eyes peeled for potential reverse dandruff in the S-Car-Go.
Professor Adam "Meow Mix" Katz on the horn, lemme hop. As always, I hope this finds you well.
I'm Smelting! - 11:12 am
While gold is off 13% since we filmed this--and crude is up 38%--I still sense some downside for the yellow metal, particularly given the textbook dandruff which is now confirmed with today's 3% decline. Gold $860 is the 200-day so watch for Hoofy to defend that level, but he'll be doing it without moi.
Click to enlarge
I would like to pick some glitter up if and when it trades with a six-handle. If it doesn't get there? Opportunities are made up easier than losses. This, I know all too well.
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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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