The Dew Spew
Are you anticipating the anticipator?
In Franklin's Tower the four winds sleep
Like four lean hounds the lighthouse keep
Wildflower seed in the sand and wind
May the four winds blow you home again
The afternoon giggles continue to wiggle as the flicks tick and the ticks jiggle. This is the thinnest day I can remember (not saying much) and while Hoofy is seemingly in control, light volume rallies are historically problematic. I don't know if it's a function of the warm spell on the east coast--it is rather nice--but jeez, Louise, I can hear mice pee on a cotton swab!
We've buzzed all session on the elements in play---the internals and financials remain the cornerstone of Matador City and those inputs, coupled with slick cyclicals, haughty homies and stubborn semis, are giving the bulls confidence. I see what you see but regardless of your posture, it's important to remember that the S&P (or Dow) has yet to find technical resolution. Do they act well? You betcha. Will they breach S&P 1160? Likely not today's biz.
With that said, the global liquidity tide continues to lift all boats (and most asset classes). The Nikkei led by example last night and Europe, the Minx, the dollar, most metals and crude are following suit. Herein lies the crux of our trading dilemma and the answer to the zillion dollar question. When will the leaky faucet finally tighten? I can't answer that question, Minyans, but I'll say this: more likely than not, it's gonna happen when the news flow is overwhelmingly positive.
The catalyst calendar will steadily pick up until we get the payroll data on Friday. We STILL haven't heard a peep out of the PPI but investors continue to operate under the assumption that no g-news is good g-news. Be that as it may, the free pass that is productivity will likely come under fire if hiring doesn't lift its keppe soon--particularly with the election ebbing ever closer. Just something to toss on ye radar as we trudge forward.
Finally, many thanks to the Minyans who've lobbed in with snaps on the new digs. It's been a long haul but I sense the glitches are seeing a light at the end of the tunnel. Please don't forget that the new passport rates will kick in sometime later today so if you haven't opted to "opt in" (or, in the case of an expired annual, convert to monthly status), the critter cops will likely ask the question the next time you log in. Just keepin' ya up and keepin' it real.
Good luck into the close.
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 firstname.lastname@example.org.
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