I've seen about 5 million QQQ for sale from the macros and thus far I'm chewing through it.
Well there's a light in your eye that keeps shining
Like a star that can't wait for the night
I hate to think I've been blinded baby
Why can't I see you tonight?
Uncle Elmer, chillin' at the Del Boca Vista, hits the tape with his observations on the current environment. "The odds 'increasingly favor' job creation," he opined, but "the 7.2% third quarter GDP growth pace is unsustainable." Before he left for the early bird dinner special (dude, it's 10:40!), he offered that "recent budget talks are not encouraging" and there's "scant evidence of pricing power" Thanks Elmie...now tee it up!
The minx is moody today on the heels of Cisco's disco. Techs are outperforming, to be sure, but the action is very sector specific. Retail hangs tough (in the face of blah retail sales), the banks are softer (watch this group for rate hike reaction), the semis remain the battleground de jour (resilient suckers) and the drugs act like they're on drugs.
Meanwhile, the F-troop remains quite the fight and Fannie is ticklin' a six-handle for the first time since late September (2003). The dialogue is getting thicker in Washington as Congress is scheduled to go on recess later this month. There are two camps vigorously fighting the reform norm. On the one side, some high ranking government officials are looking to stem a potential "meltdown." On the other, 40 lobbying firms (count 'em) have spent almost $10 million trying to sway the fray. As Comicus would say, "politics, politics, politics!"
It's very whippy out there as the bulls and bears duke it out. I wondered before if too many bears are waiting for the Scotto scenario of if we should follow the script for as long as it works. I'm not sure of the answer, but a few things are readily apparent. N's over S's, the financials will reflect rate hike jitters and Fokker is eyeballing a new job.
As always, I hope this finds you well.
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 email@example.com.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter