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Random Thoughts: Piggy Banks On the Move

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If textbook technicals stand true, this puppy is coiling for a major move.

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  • I really need to start going back to the gym.

  • The Following Buzz Appeared Between 9:00 AM and 10:00 AM into the opening gap higher…

    Gate Sniffage!
    9:41 AM


    • Smelly Cat, Se-mi-caps...what are you thinking of? Note the relative lethargy out of the gate in names like KLAC, NVLS and AMAT.

    • Retailers, incuding HD and WMT are also a bit laggy, as is beta, including BIDU, AAPL, RIMM, AMZN and EBAY.

    • Wait, why am I pickin' on the pink sheets in an otherwise green bed? Because the tape gapped higher and that's how you spy relative supply. If the tape opened in the hole, we would be noting the dry eyes for stealth demand.

    • Bank America, which was up nicely last night (and this morning) has been whack-a-moled back to the flat-line. This is a different situation that the names mentioned above for obvious reasons. The price action will serve as a psychology proxy for the banks, mortgage and credit situations.

    • Breadth, which was wire-to-wire on fire yesterday, opens 4:1 positive on the big board and 2:1 in tech.

    • Is it really only Thursday?

  • While alotta piggies poked pink after the opening bell, Deutsche Bank (DB) stood out as it was (and is) getting hit for a deuce (2%). I haven't "heard" anything- relatively speaking, of course-we wanted to make sure it was on your radar.

  • In addition to the overhead overhang that is BKX 111.50, "see" the very defined flag pattern that has formed in the group. If textbook technicals stand true, this puppy is coiling for a major move.

  • Scribble Barclays (BCS) along with the other writings on the wall as the European head of CDO's resigned due to the collapse of (at least) two structured investment vehicles that are being forced to unwind after being unable to raise short-term funding.

  • Yo Dogg!

  • Wanna hear a small world story? John Succo, who I met 17 years ago when we both worked at Mother Morgan, was my Aunt's tennis coach in Cincinnati long before we crossed paths.

  • Note the S&P trendline resistance in addition to the 200-day moving average, which remains nestled below at S&P 1456.

  • Is it me or does it feel like tired traders are ready for the summer slumber?

  • Home Depot (HD), flagged earlier for its laggy price action, should remain on the radar as a credit concern proxy. If bankers walk from the deal (expected to close today), it won't help the collective psychology.

  • Engine Room, More Steam! And to think, this was supposed to be the quiet prep season at MVHQ ahead of massive Q4 rollouts that include MV Kids and The Exchange.

  • Consistent with "trading around" my current position, I faded the opening (rather small) and will look to nibble back against my core. Nothing crazy, mind you, as I've got some room until my stop arrives and I'm respectful of the potential for an uptick in volatility.

  • As it stands and as I sit, I'm watching the financials (CFC must stay bid or the wheels will wobble off the wagon), the internals (NYSE flat, Nazz 3:2 negative), energy (as money rotates back into the drillers and the OSX taps the trendline) and the clock. Yeah, I'm feeling the affects of this racy ride too and under the "know thyself" rule, I'm trading a tad less.

  • Petty in the Hammies? Noice. If Minyans wanna sniff out tickets, Minyan Joe is on the case.

  • As always, I hope this finds you with some jingle in your jeans and a smile on your puss.


R.P.

No positions in stocks mentioned.

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 todd@minyanville.com.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

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