By Todd Harrison Jan 13, 2004 2:08 pm
Boo's your daddy?
I've just closed my eyes again
Climbed aboard the dream weaver train
Driver take away my worries of today
And leave tomorrow behind
The afternoon red continues to spread as traders digest what Elmer has said. "It isn't a worry," he said in a hurry,"and don't be alarmed--there's no need to be furry!" Bears may make passes at Fed chiefs in glasses but thus far he's managed to hoodwink the masses. If only we could convince him to visit Minyanville so he can tell me how much weight I've lost!
For purposes of the bigger picture, today's action is relatively inconsequential. Throughout this latest rally, the pullbacks have been "one and done" and until proven otherwise, Hoofy is dancing with the groundhogs. Our resident bull will actually makes the case that a refresher (in front of earnings) is healthy and welcome. "It's that broken clock thing," he said without worry, "and I figured it was time to throw Boo a bone."
He may be right (we may be crazy) but a snapshot of the daily action is anything but pretty. The semis did a V-turn after yesterday's dazzle and have burped 3% lower. This brings the SOX index within spittin' distance of it's most recent acne and if (big if) the jig is to hold, one would think that this level will as well. Still, one sector does not a tech market make and with the noticeable exception of software, the rest of the groups have (thus far) found some footing.
Away from that fray, the piggies have quietly slipped one percent and that's weighing on the old school. The BKX naturally struggled at multiyear highs and the cap has thus far been sized. BKX 950 will provide the first support underneath as we ready for Bank of America (BAC:NYSE) earnings on Thursday. That, along with a bevy of regional releases, will set the tone until next week's money center madness.
The parade will pick up considerably tomorrow with the release of Intel (INTC:NASD), Apple (AAPL:NASD), Qlogic (QLGC:NASD), Teradyne (TER:NYSE), Yahoo! (YHOO:NASD) and more. While most everyone is expecting strong showings, the real shpiel will be their collective outlooks. The Minx, as a forward looking monster, will price in eventual pick-ups or slow downs (ask Boo, he'll tell ya). If there is a fly on the horizon, the buzz will start soon.
Is this the storm before the calm? I can't say, simply because I don't know. Snapper has bitch slapped Boo at every turn (can I say that?) and turned our once brazen bear into a humble cub. As I said last Thursday, we're ripe for a gut check and I'm not sure that this qualifies as belly jelly. Be smart as you craft your risk profile in the days ahead and remember, the litmus test is the 500-handle question. There will be no couldas, wouldas or shouldas regardless of which way the critters play.
In Minyanville news, the menagerie continues to work around the clock in preparation for the town overhaul. Sammy tells me that we'll be good to go the week of February 16th and you can sense the excitement in the air. In addition to UMV and the Elementary school, there will be new tools for the active Minyans and added features for everyone. Please stay tuned for coming announcements in this regard and as always, thanks for your continued support.
As always, I hope this finds you well.
No positions in stocks mentioned.
Get The Minyanville
Daily Recap Newsletter
Daily Recap Newsletter