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American Band Stand

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Up on Cripple Creek she sends me
If I spring a leak she mends me
I don't have to speak, she defends me
A drunkard's dream if I ever did see one


(Robbie Robertson)

Well, if that intoxicating stand by the bulls was the easy move, I'm not sure I wanna stick around for the hard move! As discussed, the buyers came out of the woodwork to take advantage of the (gasp!) early weakness and now the fun and games begin. The flow I saw off that move was primarily futures led, although the telco, retail and transportation traction does stand out. One thing for certain...this is not for the feint of heart.

I opined to Boo this morning that he should expect a battle and he's certainly getting it. This latest lift in the equity market coincides with a sell off in fixed income land (shocker there), and I'm now seeing bears throw in the towel. I certainly can't blame them, the market acts great. However, I'm going to give our furry little friend the benefit of the doubt and let him sit with me a while more. Some might call me stubborn, but my risk profile allows me certain latitude at times and I think this rally is getting long in the tooth. Obviously, this is just one traders (humble) opinion...I just wanted to pass it along.

The breadth on the big board is still 9:5 negative while the Nazz is 3:2 losers to winners. The action in RBOC land is interesting, although I'm not sure if it's a "trading thing" or if there's more meat to that story. Meanwhile, I continue to see hedges being unwound (creates futures to buy) and, while that's giving a bid to the tape, it fits nicely into Boo's thesis.

Sincerely hoping this finds you well. Gotta hop.
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