Editor's Note: Todd posts his vibes in real time each day on
Buzz & Banter
Good morning and welcome back to a fresh five-session set.
Following last week's expiration-related volatility, the
precisely where it "should" have at S&P
Past resistance is future support, and Technical Analysis 101
dictates that the time to buy a breakout is on the retest of the
level from which it broke out, so the bulls will attempt to hold
that zone as we edge into the new week.
Two points of parliamentary procedure: First, the "
most bearish scenario
" discussed last week will emerge if rates uptick
the decision by the Fed to not taper. That wouldn't be an option if
the Fed did what it hinted at (
rather than attempt to play trader
), but it is what it is and unintended consequences have become par
for our collective course.
Second, we would be wise to respect the chart below, which
highlights the false breakouts thus far this year, one of which led
to an 8% correction and the other a 5% correction. Perhaps the
third time is a charm, but the uniform belief that the Bernanke
Call (as opposed to the Greenspan Put) is a risk-free reward is at
the very least worthy of a nose-scrunch.
Over in Germany, Angela Merkel won her third term as Chancellor but
missing from Angie's List was a majority decision. She's on the
hunt for a coalition partner, and we'll get further clarity on that
front on September 27 when SPD party leaders meet. In other news,
the jawboning got off to an early start this week as Fed Governor
Dudley suggested that the Fed should "act forcibly to push against
headwinds," Fed Governor Lockhart said that "monetary policy can
help promote a faster recovery," and ECB President Draghi said that
the ECB is really to unleash another round of LTRO, if needed.
In stock-specific news,
) knocked the cover off its weekend launch of the iPhone 5S and 5C,
selling 9 million units (one of which was mine). That has triggered
a pronounced "N's over S's" opening, with
(INDEXNASDAQ:NDX) outperforming S&P, which is masking the punky
action in the financials (
(C) are all down a deuce (2%).)
As go the piggies, so goes the poke, so keep your right hand up as
we together find our way.
Good luck today.