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Get the Lead Out!

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May peace be with you!

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There's a lady who's sure all that glitters is gold
And she's buying a stairway to heaven.
When she gets there she knows, if the stores are all closed
With a word she can get what she came for.


(Led Zeppelin)



The Minx slinks to session highs as the bears from Red Dye dry their eyes. They tried to squirrel an acorn this morning but the forest just echoed with laughter. The process has become a broken record for Boo as he tries, tries, tries but cries, cries, cries each and every session. The question now becomes one of sustainability for the bulls as they turn their attention to three seperate catalysts.

While Chambo will clearly set tomorrow's early tone (and Elmer will garner most of the attention thereafter), a few interesting elements continue to stand out. The weakness in the dollar comes to mind as the global community seemed to cast a unanimous vote against our current--and continuing--fiscal policy. Fleck made a good point when he offered that the difference between being bearish and positioning bearish is all the difference in the world. Yes, some heavy hitters are pressing their bets but the majority of folks haven't wrapped their mitts around the fact that there are alternative currencies.

Speaking of which, gold and silver act precious as money migrates to the metals. Been here, done that, it seems, as "a weak dollar is good for the multinational" thesis is supported by acne in the cyclicals and renewed strength in the industrials. Collins notes the importance of HUI 240 level (Amex gold bugs) and a technical breakout will seemingly further the migration. It would seem that the stress test (dollar vs. equities) will reach a saturation point but thus far it hasn't happened. I know Succ is eyeing USD/JPN 100 as a potential pin prick and I've moved that symbol front and center on my eight screens.

As far as the Minx is concerned, the tape is still uber-extended but acts uber-jazzy. Overbought can get more overbought, we know, but the "easy" money may be in the rear-view (how scary is that). One thing for certain, the first X% pullback with be rationalized as healthy and it very well may be. I will simply remind you that the first couple of bounces off the recent lows were widely considered to be a simple alleviation of the oversold condition.

I've got to jammy over to a 3pm conference call. Please forgive the terse tone but things just got a bit hectic in the city of critters. Fare ye well into the bell and happy hoppin' with Chambo.
R.P.

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