Randoms: The Thataway Tape!
Opposites attract for eleven straight sessions on the Dow!
- Did you know that if the DJIA closes up today, it'll be the 11th consecutive day the index has closed in different direction from the prior session?
- As communicated at the end of Friday's contra-hour, I covered my shorts into S&P 875 to take a fresh look as a bounce off that level made all sorts of sense the first time it was tested.
- S&P 875 was acne support, 892ish is/was the recent short-term downtrend line.
- S&P 900 is was previous support and current resistance and perhaps the most important one of 2009 is up at S&P 950.
- Should S&P 950 edge closer-particularly on a sharp pop-it'll present nice and defined risk profile for Boo's crew to unleash the hounds. Could we get there next week when everyone and their sister is away from the fray?
- As Minyans know, I recently shifted back to "shorting to buy" rather than "buying to sell," which is a subtle yet important stylistic distinction.
- That doesn't mean we must assume risk all day every day, it simply means that for the most part, I want to use rallies to my advantage (to establish defined short side risk) rather than chase performance.
- We don't do victory laps in the 'Ville but I'll offer some serious snappage to Pepe Depew for flagging the India Fund (IFN) on March 24th as an upside vehicle. 66% in less than two months is nothing to sneeze at, my brother.
- A check of the tea leaves finds market breadth 4:1 positive, the financials flying (BKX is up a finski and Bank America (BAC) is up twice that on the back of the Goldman (GS) push), energy firmer than a college cheerleader (note crude up 5%) and the dollar tame (as it sits at important support).
- What have I done thus far today? Less, as a matter of course, as I await an advantageous risk-reward before pushing my hard earned chips on to the table.
- When spying opportunities, I look for "confirmation" from our trading tells. Given the strong showing in the financials, the snazzy 4:1 breadth and the (marginally) lower dollar, I don't see an "edge" in fading (shorting) this lift although it could be setting up for Turnaround Tuesday reversal.
- The most important thing on my radar? The two-hour season finale of 24 tonight, which is either really exciting or sorta sad.
- This is a bit late but Piper Jaffrey blasted some positive vibes on Apple (AAPL) mid-day, for those curious why the stock suddenly popped.
- Keeping loose grips on the handlebars-and defined risk on trading tries-makes for an entirely more enjoyable market ride.
- Who had more unresolved upside? Cobain, Biggie, Tupac, Belushi, Candy or Farley?
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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