Who ya calling Francis?
Elmer paints the tape with constructive comments as he opined that "the economy is poised to accelerate" and made it quite clear that he'll be as accommodative as possible (rates). The futures popped on the headline but have since settled back in. Could you imagine the reaction if he said "I'm gonna squeeze every last retail investor into this market regardless of the risks!" (Relax, Francis, I'm just kidding)
One quick blurb: since 1998 on the day of Humphrey Hawkins testimony, the SP500 has been up only once (+.9% in July 1998), flat twice (Feb 2000 and 2002), and down the other eight times for an average loss of .98%. That's from my excellent Lehman Brothers coverage who, in lieu of sushi, have served up statistics.
Meanwhile, traders are eating waffles for breakfast as the tape the tape giggles back and forth. I've seen isolated flow on the sell-side but it feels as if there's a fair amount of tape watching. Keep half an eye on the BKX gap from yesterday's opening--if it starts to "fill"under BKX 910, it works to 895ish.
Best guess? Some profit taking ahead of tonight's reports.
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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