Following Yesterday's Lift
It's all about risk profile and time horizon, Minyans... to each their own.
Editor's Note: The following content was posted on the Buzz & Banter yesterday afternoon. It could be important to review these vibes before today's opening bell.
The Tale of Two Tapes - 3:08 pm
I've been trading for a mighty long time and I'm not sure I've ever seen such a bipolar stroller.
Seriously, we've got Wells Fargo (WFC) and Freddie (FRE) up 10%, Bear (BSC) up 8%, Beazer (BZH) up 18%, General Motors (GM) up 8%. Heck, the trannies are up 4%. Trannies! Ewww!
And then we've got Google (GOOG) off $45. Apple (AAPL) down 17%. Amazon (AMZN) taking a 7% haircut.
I love it I hate it I love it I hate it I love it!!!!
A few random vibes:
- Picture Mel Brooks. "Rotation, rotation, rotation!!!"
- As goes the piggies, so goes the poke. This, we know (although it sometimes takes time, as we've learned). With that said, leadership is a bit narrow for my taste and I would still like to see participation by huggies and druggies (consumers and pharma). And tech, yeah, that tech thing.
- Every journey begins with a single step. Along those lines, after a 15% two-day step off the lows, watch BKX 88 as the first level of lore.
- There is quite the debate going on in The Exchange regarding this morning's missive. This is the Minyanville community coming alive and if you haven't checked it out yet, you're missing some good stuff. I've long said that the friction between opinions is where true education lies.
- Remember NYSE internals? Working nine to five. What a way to make a living.
- My thoughts? That I can't believe I have a 6:00 AM flight to the left coast tomorrow.
- Aside from that? I haven't pared much since I prematurely evacuated from the financials (not complaining). I reserve the right to make further sales as a function of price (either way) but so ya know.
- For what it's worth, Hoofy likes the fact that there are so many raised eyebrows on the upside.
- Asset Alligators wha?
- So you know and subject to change, I just picked up chatter of a monster S&P futures buyer. I concur, sir, at least for a trade.
Check List! - 3:44 pm
So, we said on Monday (TV) and Tuesday (MV) that, post rate cut, the DNA of the second lift would be the qualifier from a LVLT (levels, volume, leadership, tenor) standpoint.
Taking a deep breath and sticking toothpicks in my eyes (to keep 'em open), I would say "check and recheck" (held support, lotsa resistance above), check (good volume), incomplete (getting better but missing tech) and a tad too giggly (cheerleaders belong in Phoenix).
It's all about risk profile and time horizon, Minyans--to each their own--so it's impossible for me to offer blanket advice (we don't roll that way). What I will share is what I'm doing, always and honestly, with hopes it adds value.
Along those lines, I punted my financials (earlier), pared my homies (just sold half and make take the 20% single session gain) and I'm holding my pharma and consumers (much better tenor but still on their heels).
If I were here mañana, I might trade 'em differently, so you know, but I've learned that blind risk is like a blind melon. I'm not quite sure what that means but forgive me, I'm fried. I'm gonna splash some water on my face, head over to do a Happy Hour segment, feed the cats and pack my bags. I'm going back to Cali, Cali, Cali. Going back to Cali...
Fare ye well, faithful, and keep it real.
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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 firstname.lastname@example.org.
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