Fokker Phone Home!
A couple of quick vibes from the front before we kick off another day in the fray. The bold gold and dollar squalor continues to wishbone this morning and the reason being assigned to the rhyme is yesterday's comments by Atlanta Fed Prez Guynn (rates to stay low). While this may or may not be true, I personally think the greenback slack is, pure and simple, a function of the overtime hours at Elmer's printing press. Just my take--and I still feel that this macro dichotomy is telling. I know some smart folks are eyeing the fixed income market for spillage and I think that's wise.
For the day, watch the semicaps as Varian Semi (VSEA:NASD) and August Tech (AUGT:NASD) boosted forecasts. They're tertiary players to be sure but in this environment, the bear hugs have been getting traction. As the semicaps are the carrot to the semiconductor horse and the semis are the horse to the NASDAQ cart, this complex should be watched. They were up big yesterday, mind you, and offered a decent tell.
The financials should also monitored as influential Prudential analyst Michael Mayo (no, not the guy from Officer and a Gentleman) upgraded JP Morgan (JPM:NYSE). The easy money environment has been a boon to the banks and the BKX is tickling multiyear highs. Whether or not they can push through will be a major signal for the Minx.
Finally, our old friend Snoop lobbed in the overbought/oversold numbers this morning and I wanted to pass them along. In the OEX, 78% of the stocks are overbought while 3% are oversold. In the NDX, 73% are overbought and 4% are oversold. This, of course, doesn't mean a correction is right here, right now but it certainly should be factored into the decision making process.
I sure hope Fokker is enjoying the South Beach sun on his vacation. I suppose it's good for me--although I need him to call in and tell me how I like my coffee. Last I heard, he's been watching Y Tu Mama Tambien to brush up on his Spanish and hitting the sandy beaches with his lessons in tow.
Buena suerte hoy!
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.
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