A Lenny for your Thoughts
By Todd Harrison Oct 21, 2003 2:26 pm
Maybe Boo should dress up like a bull for Halloween and shake up the mojo!
Don't come knockin' on my door
I don't wanna see your shadow no more
Colored lights can hypnotize
Sparkle someone else's eyes
The afternoon session continues to creep as the critters talk to our coverage peeps. The theme park? How 'bout the action in gold? The metal (and commodities in general) act fabu and that's raised the eyebrows of some inter-market speculators. Hoofy clearly doesn't care (he has all his teeth) but if history is any guide, it serves as a warning flare (if nothing else).
Away from that fray, traders seem content to use their E-tickets (read: equities) as we edge through tortoise Tuesday. If yesterday's lesson was to never short a dull tape, Boo has to be a bit concerned by the whisper thin conditions. His modus operandi remains the same (he's scaling into November puts while using cheapie upside hedges) and, despite his frustration, he's trying to view price as an opportunity (rather than a burden).
Hoofy, for his part, is lying in the hammock reading the latest edition of Playbull Magazine. There's little cause for concern, in his eyes, as the breadth is minty, the semis are jiggy, the banks are firm and the bulls won't turn. His next objective, so you know, is to try and secure S&P 1050-1060 and use that (past resistance) as a future foothold. If he can do that, he figures, it'll be "game on" in Matador City.
The overnight news will be fierce and it'll be plentiful. Often times, during earning's periods, the main driver of the action is active traders and macro hedgies. The more "traditional" money typically assimilates the news and plans a strategy for execution. That could be one reason why it's quieter than a mouse fart. Another reason, perhaps, is that there's no motivation on the sell-side. We've spoken of this dynamic all year in that it'll self-fulfill (bullish) until the buyers are satiated (bearish).
That, my friends, will likely be the biggest determinent of our path into year-end. What, if anything, will spark the initial fear that plants the seed of "holy cow, I'm 10% off my high (for the year) and wanna lock it in" trade? It'll create the bottleneck to a potential disconnect, if and when, and spike volatility (as traders reach for protection). In the meantime, as you're quite aware, the drifty grift continues to lift and is rewarding the patient bovine among us.
On a personal note, I would again like to thank those who have taken the time to spread word of our humble little town. We've got big plans for these critters and rely on the good vibes and continued mojo from ye faithful Minyans. In one short year, Minyans have migrated into more than 60 countries and 200 Universities. That's eye-popping...WOW!...but it only scratches the surface of where we hope to go. With your help, a lotta love and a little luck, we'll surely get there.
Fare ye well.
No positions in stocks mentioned.
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