Talk about a morning quickie! These moves are fast and furious!
The wheel is turning and you can't slow down
You can't let go and you can't hold on
You can't go back and you can't stand still
If the thunder don't get you then the lightning will
It's just another manic Monday as equity ecstasy once again grips the market. The combination of Snapper's momentum (from Friday) and a few sizeable deals is spurring the herd into the absurd. We sensed the strength while Hoofy was on his heels. How now hot cow? Let's go to the video tape.
The uber-early morning breath is minty as there are three winners for every Yankee. The strength is fairly broad based with obvious outperformance in the brokers. While the three martini lunch may not be back, conventional wisdom dictates that a stronger deal calendar bodes well for that complex. That is certainly true--there's no denying it--although my sense is that it'll prove to be a band-aid on a broken bone.
As a function of last week's volatility, there are more gaps than a shopping mall. The nearest vacuum now rests above S&P 1038 and potentially "works" to 1045. I don't know if it fills but, either way, I'm happy to use this strength to add back some of Friday's midday nibbles. If the Burned Razor is still in play (and I have no reason to think otherwise), this blip will prove to be fleeting. Today's business? I'm not certain. A smart guy once said that you can pick the direction or the timing but you'll rarely nail both.
The macro tells are marginally equity friendly as gold is down (small), the dollar is up (small) and Europe is (thus far) holding its gains. So you know (and if you care), I'm also watching Cisco (CSCO:NASD) and Microsoft (MSFT:NASD) as tech tells and Citigroup (C:NYSE) and the generals (electric (GE:NYSE) and motors (GM:NYSE)) for the old school.
Jammin' a bit so lemme scoot. I'll be back.
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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