The Meeting At Ollie's Diner.
Hoofy, not being able to sleep, was pacing the floor at 4 a.m. when Daisy finally rolled over and said, "Hoof, come back to bed. Your hoofs are knockin' on the floor and you're keeping me awake." "I know Daisy," he said with slight nervousness and anticipation of the possible day's events, "but I'm somewhat confused and this helps me think. I'm gonna call Sammy and see if he's awake. Maybe he'll meet me at Ollie's Diner for a 'Cup of Jo.'" "Good Hoof, I hope that helps. Now let me go back to sleep. I have a lot of little critters to teach today."
Ring, ring, ring. "Hello, Hoof. Whatta doin' callin' me this early in the morn?" said Sammy, knowing very well Hoofy was nervous about the market. "You up!?" Hoofy said with a quick and concerning voice. Sammy knew Hoofy wanted to talk. Little did he know, Boo just called a few minutes ago with the same questioning voice. "Yeah, I'm up." Sammy said reluctantly. "Why don't you meet me at the diner in 15. Boo just called and he wanted to cover a few things as well. And Hoof - I'll bring my charts."
As Hoofy was walkin' down to the diner, he saw Snapper on his way to City Hall with a bunch of building plans rolled up under his arm. Snapper is always up early. He overseas all Minyanville's construction and it's been exploding over the last year. Hoofy yelled, "Snapper! City Hall's not going to be open for awhile, why don't you join Sammy, Boo and I for a cup of 'Jo' at the diner?"
So there they were. All four, sitting outside the diner at a small little table, sippin' their 'Jo.' With Hoofy and Boo both sitting at the table, Sammy, knowing very well neither were going to voice their concerns first, said, "Look guys, you've got to sit back and relax. It's not as bad as it seems."
Snapper: But Sammy, if rates start going back up... well... I'm concerned about the housing market and that's my livelihood.
Hoofy: And that's not all, what about my bank and the market in general?
Boo: Guys look, I know you don't want to hear this, but this market has to consolidate and now's a good a time as any.
Sammy: Alright, that's enough. You all are making very sound points, but you've got to relax. It's not the end of the world. One day does not make a market. Look, I understand things may be changing in the financial world, but you've got to understand one thing. Boo was in charge for 36 months, then Hoofy for 11 months, and now it's becoming slightly more volatile with an indistinguishable direction. Be logical guys, look at what the short-term charts are tellin' you and make the appropriate decisions. If you don't feel comfortable with that, then just sit it out until it does become clearer. Y'all are making mountains out of mole hills. Take a look at the 3 short-term majors...
The Dow has hit 2 converging resistance points and the MACD has just turned negative once again. However, it does have support at the 150DMA. Unclear, sure. But that's going to get resolved sooner than later. One's gotta give.
The SPX, same scenario. It's showing both support and resistance; and until this is resolved, things will continue to be uncertain.
The Nasdaq is in the same boat; only it has a little better technical formation.
Guys, look at it this way. You can't force a round peg in a square hole, just like you can't make the market do what you want. However, there are plenty of different possibilities, technically and fundamentally, that will push this one way or the other. So why guess! I'll tell ya what I'm doing (not advice) - waiting until the smoke clears, then placing my bets. Until then - STOP CALLING ME AT 4 A.M.!
As for you Snapper, don't get your shell all puckered up. You've got to realize rates have been at unprecedented lows for quite some time and people have gotten used to it. However, Minyanville has huge demand and even if the rates increase, back to historically normal levels, you're still going to be in business.
Until next time...
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