Whips and Change
By Todd Harrison Jul 15, 2003 3:03 pm
Good luck into the close!
And it makes me so angry
To know that a flame still burns
Whey can't I get over?
When will I ever learn?
No, it wasn't a cannonball...or a golf ball...or a bullet...or a V2 rocket...or a sneeze. The first man made object to break the speed of sound is the whip. It's rumored that this first occurred in 4000 BC but absent Neil Glassman, I'm don't know anybody who can confirm the timing. Regardless, Minyan Joseph Homer was the first correct answer and he'll be sportin' a fine looking Minyanville tee this summer. Doh!
Speaking of whips, the Minx pulled a thataway on the heels of Elmer's zoo and the financials are weighing on the tape. We've discussed the gappage in the financials (below BKX 910) and once the piggy banks started to oink, the breadth shifted decidedly negative. What can we make of this? A broach...or a pterodactyl...but that's about it. The entire world is awaiting word from Mr. Chips and until Intel (INTC:NASD) reports, it's posture city.
I'd like to weigh in on the Buzz & Banter debate next door. We've just emerged from the biggest financial asset blast in history--almost twice as big as the Nikkei--and we're supposed to believe that we've burped past it in three years? There are ramifications stemming from the bubble that haven't even begun yet (read:real estate). The very fact that so many blindly believe that we're on the cusp of a new bull market is more than bearish--it's scary. That doesn't mean it's today's business. Quite the contrary, Elmer's leaving an unpaid tab for the children of tomorrow.
Turning our attention to the here and now, the wild ride on the fixed income side is raising eyebrows in equity circles. How long will it be before the talking heads start chatting up the pickup in rates as equity negative? The action is far from sloppy (so far) but we should note the continued supply above S&P 1000 and the potential change in dynamic. I still sense slippage in the midst but my trading risk is defined (puts) and I wanna hear the outlooks in tech.
I'm gonna hop and sharpen my pencils for tonight's call. Spend a few moments thinking about your time horizon, risk profile, relative edge and stylistic approach. The trick, in this business, is to focus when ya gotta and turn it off when you can. It's easier said than done but, at the same time, it's never too late to start trying.
Have a peaceful night.
position in intc
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