Leggo my Eggo!
All we are is dust in the wind, dude!
--Ted 'Theodore' Logan
So, here we are...again. The equity market is higher, the shorts are schvitzing, the fear of missing is palpable, the optimists are encouraged, Fokker is bumming cause I'm being "harsh" and Boo is running around my office screaming "turn the machines back on!" I've got two things to say. First, you've yet to see harsh, Florence, so don't waste your best mopes yet. Second, take a chill Boo, there's alotta trading left to do today and I need you to stay sharp.
I'm uber-respectful of the breadth and the 2% jig in the banks. I'm also quite aware that an emotionally charged market has a way of exacerbating the price action (both ways). Finally, I'm conscious of the fact that, eventually, one of these rallies has the potential to "stick" and really plant the seed of hope in the mindset of the masses.
Now, with all that said, I still don't "buy it." Yes, the fact that I'm not seeing the real buyers may be a moot point (we know the buyers are higher). Still, I don't like the low we put in and until there's a firmer foundation in place, I'm suspect of the sustainability of this rally. Would I prefer there to be more hope in the tape? Yes--that's one of the main reasons I'm not being more aggressive. The emotional types haven't bitten on the forbidden fruit yet and, as such, there may be a bit more to go on this lift.
With that said, and as we edge towards S&P 846-850-855 (resistance), I'm going to humbly slip another leg into my metaphorical bear costume (makes 50% conviction on the short side). I understand that I might be a tad early (shocker) but I aim to make this column an extension of my thought process and, well, now it is. With the banks eyeing resistance at BKX 725, Wal-Mart a whisper kiss away from resistance, oil continuing to ramp and shorts having covered a chunk of exposure, I can justify the appendage.
More importantly, we've yet to receive any new bids on our charity auction and I wanted to put it out there again. It's for the kids, Minyans, it's for the kids.
I'll be back.
Daily Recap Newsletter