The East Side Shuffle
By Todd Harrison Feb 20, 2004 2:22 pm
We'll see YOU on the other side of gussied up!
Fish don't fry in the kitchen
Beans don't burn on the grill
Took a whole lotta tryin'
Just to get up that hill.
Shocker, Weezy! A little crimson creeps through the cracks and Elmer hits the scene to let us know that he sees "encouraging signs" that the labor market is improving and employment rising "more quickly before long." I'm not sure that's proper use of the English language--it might be--but his timing is impeccable. Should a collective chorus from Elmer's crew really surprise us at this point? I'm surprised that he didn't mention the "evil doers" from Red Dye Junction!
Whether you agree with him or not, Nero spurred a spate of short-covering when his text hit the tape at 1:45 EST. Whenever we see intra-day counter trends (vs. the prevailing direction), I always like to watch the breadth (didn't budge) and our leadership sectors (gaining some traction) for clues as to whether a reversal is in the works or if it's simply an oversold (overbought) correction. As it stands, the internals are telling you not to believe the hype but we gotta respect jittery critters (both ways) and the unknown that is expiration.
The real story remains the broader asset class picture. Once upon a time, equities traded as a monolithic product vs. bonds, the dollar, gold and crude. The chatter on the Street is that macros are repositioning their bets but there's no way to know for sure. I will say that the market(s) is/are bigger than any one person (save Elmer) so I'm not sure I subscribe to a massive gorilla shift. It's what's making the rounds, however, and I figured I'd pass it along.
With the notable exception of the massive re-launch, next week is relatively quiet on the catalyst front. Lowes (LOW:NYSE) reports Monday, Clear Channel (CCU:NYSE), Federated (FD:NYSE), Home Depot (HD:NYSE), Heinz (HNZ:NYSE) report Tuesday and a handful of names filter out during the remainder of the week. We'll also spend some time with Monsieur Beeks but most of the economic data will come Thursday and Friday.
I've gotta jump and focus on both expiration and the turning the final screws on the new and improved Minyanville. I'm gonna miss this old town--it's been very loyal and served us all in good stead. Alas, as with most things in life, it's time to grow up and move on. We'll be closing the curtains at 5pm and when they're pulled back, you'll see the next step in our vision. As we always say, we're only as strong as our readers so lemme please take this time to thank YOU for making it all possible. It's only just begun.
Have a peaceful weekend.
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