What the Financial Stocks Are Telling Us
As go the piggies, so goes the poke.
As I'm about to step away from the screens for 10 minutes -- and a lot can happen in 10 minutes -- I wanted to follow-up my previous Buzz with some actionable levels.
S&P 1190 (today's high) and S&P 1200 (gap lower on Monday) are near-term backstops for the bears. While I openly sensed a downside "tap" a bit earlier, I feel compelled to follow it up with some context. I've learned to stay humble or the market will do it for you.
Goldman Sachs (GS) -- something still doesn't smell right there -- Mother Morgan (MS) and JPMorgan (JPM) have emerged as flies in this broader upside try, and the piggies are probin' lower as evidenced by the red BKX.
Remember when the BKX and SOX (semis, also red) were our super-tell duopoly? I do as well, and yes I feel old.
I would also like to update the S&P vs. BKX dynamic as it foretold the latest malaise (the signs were there if you chose to see them). I offer both charts below for some visual representation.
Click to enlarge
Click to enlarge
Discipline over conviction as we find our way. And remember to smile. We're a few short hours from our requisite respite and I, for one, am looking forward to focusing my attention on the important stuff (like the laughter of little kids). This tape may suck the life out of us, but it's up to us to refuse it anew.
As always, I hope this finds you 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 firstname.lastname@example.org.
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