Random Thoughts: Has Tesla Entered Bubble Territory?

By Todd Harrison  SEP 27, 2013 11:02 AM

Stock market observations into the weekend.


Editor's Note: Todd posts his vibes in real time each day on our Buzz & Banter.

Following a string of losses in the stock market—begrudging losses, but losses nonetheless—the tape grinded higher yesterday to finish in the green, holding the 38.2% Fibonacci retracement in the S&P (INDEXSP:.INX) on the close. That was a victory for the bulls, but one that was short-lived, as evidenced by the price action this morning.

The looming concerns continue to emanate from Washington, DC, as the political infighting persists. Conventional wisdom dictates that calmer heads will prevail—and they most likely will, at some point.  The caveat is a market that is priced pretty close to perfection near all-time highs, and economists predict a US government shutdown could shave fourth-quarter economic growth by 1.4%, depending on its length. 
Last Friday, into the teeth of the “no-taper euphoria,” we cautioned investors that the two previous “breakouts” to all-time highs were met with immediate selling, resulting in declines of 8% and 5%, respectively.  That seemed like a throwaway thought at the time given the Circle Smirk at the Federal Reserve but it’s worth a mention as we meander 2.5% lower week over week.
Alas, it’s Friday and you know what that means: We’re a few precious hours from our requisite respite and pigskin galore.  As such, I humbly offer the follow Random Thoughts as we edge toward the weekend, in no particular order:

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Twitter: @todd_harrison

Position in SPY.

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.

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