The Donna Summer Double Top
See both sides on Freaky Friday.
I was chewing through my charts this morning, as I do, and my first impression was Donna Summer.
He said what?
Yes, Donna Summer, the disco diva, born LaDonna Adrian Gaines. That Donna Summer.
Because since I spied the patterns in the S&P and NDX, I haven't been able to get the five-time Grammy winner out of my crowded keppe (and I'll bet you can't either).
Last dance, last chance for love. Yes it's Boo's last chance for romance today....
And why you ask?
The markets are either going to form duel double tops-should the S&P remain under 1380 and if the NDX is capped by 2650-which would be a bearish sign, or the tape, emboldened by the Greek debt accord and empowered by constructive economic data (note the .2% up-tick in the labor participation rate), will break out to fresh cycle highs (which would stop out the last batch of those dancing bears).
Until proved otherwise, this setup provides nice and tight defined risk for those banging with Boo, but as always, we strive to see both sides in the 'Ville-and now you do.
Good luck today.
The ISDA-International Swaps and Derivatives Association-is meeting as we speak to determine if the Greek debt restructuring constitutes a "credit event."
If it does-and in my opinion, it should-that will trigger credit default swaps on Greece, where the unknown risk will surround who wrote these contracts, and how that reverberates up and down the financial food chain. If they don't trigger, there will likely be unintended consequences of a different breed as holders of these insurance contracts may no longer trust their ability to perform as anticipated when they were positioned.
In technical terms, this is "sort of a big deal" so keep your eye on the outcome and understand that either way, there will be ramifications under the financial hood.
Have a great weekend; you most certainly deserve it!
Follow Todd and over 30 professional traders as they share their ideas in real-time with a FREE 14 day trial to Buzz & Banter.
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.
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.