Just Trading, Mang!
By Todd Harrison Oct 07, 2003 2:25 pm
Good luck into the close!
"Rule number one: don't underestimate the other guy's greed. Rule number two: don't get high on your own supply."
--Frank Lopez, Scarface
The afternoon session is chuggin' right along as Snapper and Boo stare each other down. Our resident tortoise seemingly had the mojo (on the heels of the intervention) when the Monopoly peg players turned and covered up their newbie shorts. Now, as that layer of demand abates a bit, a truer supply/demand equilibrium has begun to emerge. Hey Fokker, every day above ground may be a good day but this particular session is far from over!
Hoofy will argue that a Sammy salsa (sideways tape) is a healthy digestion of the recent run and is setting up for a blast off through the recent highs. If he's correct and we're basing, there is some room to the upside as the major stochastics (while edging closer to sell signals) are far from extended. Further, he opines, the ability of the Minx to shrug off bad news (Syria, dollar, Raiders) is a clear sign that she's not ready to give it up yet.
A frustrated Boo, meanwhile, understands that the backdrop has become increasingly treacherous and the Minx is pricing in a best case scenario. The dollar squalor is a big deal, he feels, and it's only a matter of time before the psychology bubble pops and drops. The crowd is loaded to the gills with equity exposure and, as we're running out of room on the lopsided sector bell curve, the scales are tipping at the top.
I've been spending the better part of the day playing umpire between these two and, truth be told, they both make pretty valid arguments. I still think Boo is due with tight stops (September highs) but if Hoofy can escape today's session with marginal damage (or gains), it'll bode well for the "can't get 'em down" camp. There aren't many clues nestled in today's muck--the breadth, financials, semis are nondescript--but again, the real ordeal is about to begin
Yahoo! (YHOO:NASD) will kick off the tech fete tomorrow and that'll usher in a few solid weeks of data and outlooks. The news will be stock specific but as the conference calls start blinking on the speed dial, an aggregate assessment will soon emerge. There's been a noticeable lack of motivation on the sell side mind you but that, in and of itself, is no guarantee that it won't emerge. As a matter of fact, some would argue that the absence of fear is reason enough for fear. Follow?
I'm gonna turn my attention to the bickering flicks before lacing 'em up and hoisting some hoops. They say that a healthy body leads to a healthy mind and I'm overdue for a one-on-one with my pal gym. For all of you starting anew, this is the first day with a clean slate--let's make it count and fill our year with positive thoughts, good vibes and charitable deeds. As a wise man used to tell me, what goes around, comes around.
Have a peaceful night.
No positions in stocks mentioned.
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