The Fawning Leibowitz
Sheets of empty canvas
Untouched sheets of clay
Were laid spread out before me
As her body once did
Good morning and welcome back to the hopeful shack. After two winning days for the first time this year, the bulls are forgetting to feel any fear. "We've now turned the tide" said Hoofy with pride unable to hide a grin oh-so-wide,"reflation is here and its spreading worldwide so come climb aboard or please step aside!" Is he A.D.D and out of his tree or will he step up for win number three? Strap yourself in and let's count the dough as we ready ourselves for a minxy new show!
Earnings weeks are always freaks but this recent string of sessions has been particularly hairy. We've been keeping a close eye on Hoofy as he's been operating with his back to the wall and a renewed sense of urgency. January has been a rude awaking for the blind ambition crowd and it was "put up or toes up" time in Matador City. They responded with some moxie and, after absorbing more probes than Fletch, put in the most "solid" showing of the year yesterday.
In many ways, today's fray will continue to focus on the same dynamics. The internals are key as they were minty fresh yesterday from wire-to-wire. That emboldened the dip shtick bulls and kept them gunning despite an inability to mount the S&P 1175 hump (watch this!). And while the dollar has become a bit obvious as a tell, DXY 84 remains an inflection point that needs to stay on our radar. A jump through that level would seemingly bode well for Boo and his bid (or lack thereof) to deflate asset classes en masse.
I was relatively constructive on the tape for the last few days but opined, late day on the Buzz, that I was going home a bit more balanced. Perhaps that's my big picture bent clouding my short-term antennae (wouldn't be the first time) but with multiple gaps sitting below, bargain basement vols (please see Brian's column) and geopolitical uncertainties looming (white light across the pond), I opted to come in fresh and read the tea leaves.
Beta should offer additional clues (watch Google (GOOG)), along with the piggies (Citi (C) was upgraded), semis (room to SOX 420) and Microsoft (MSFT) (ahead of tonight's earnings). Take a deep breath, collect your thoughts and think positive as we tackle this beast. And when push comes to shove, remember to visualize rather than rationalize--it'll put some jingle in your jeans.
Good luck today.
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