Randoms: The Thataway Tape!
By Todd Harrison May 18, 2009 2:35 pm
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?
No positions in stocks mentioned.
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