By Todd Harrison Jul 28, 2004 3:25 pm
May peace be with you!
"At this point, you might be asking yourself, 'why am I holding this 30lb. Cinder block in my hands? You might also ask yourself, 'why does this cinder block have a long piece of string tied to it? And finally, why is the other end of this string tied securely to your positions?"
--Mitch "the Godfather" Martin, Old School.
The flickering ticks are bickering quicker as we edge towards the Hump Day close. It's been a barn burner in the city of critters and the action has been wild, wooly, pushy and pully. As it stands (and please don't blink), the Matador City committee has successfully held NDX 1360 and Snapper is pushing his mojo to the brink. It's gappy and trappy so please, Minyans, define your risk and remain lucid. This is no time to lose focus.
We've been discussing on the Buzz the S's over N's dynamic and how the money centers and cyclicals "felt" like they've wanted to lead the upside breed. That was balanced by the bunk breadth (now flat on the NYSE although still fugly on the Nazz) and the trippy SOX (pared their losses). The rest of the sectors are taggin' along: biotech (+1%), the XAU (+1.5%) and the drillers (+1.75%) stand out with their price performance.
The bigger picture is interesting as well. Oil is center stage with the Yukos mess dominating the headlines. Low level chatter was around earlier that a big investment house got caught on the wrong side of a monster hedge and is helping to squeeze the Texas tea higher. I have no insight in that regard, but the $43/brl clearly wasn't in many economic models. And if we pull towards $50/brl, which seems ultimately inevitable, but may not be near-term business, you'll see more freakage on the street of dreams.
Away from that fray, the metals popped midday led by a white lightning strike (+2.2%). The silver chart offers a real-time example of the caveats of pressing technical levels as it briefly broke the 200-day and jammed higher. Gold is another story altogether as it rallied in synch but stopped near $390, which was previous support and current resistance. There's a whole heckuva lotta inter-market rotation going on, so Minyans may wanna "widen" their grip and tighten the ship.
A ton of overnight earnings are on tap so please lemme hop and sharpen our #2's. If you haven't seen the line-up for Crested Butte, please sneak a peek as this is starting to gain some upside momentum. If you can't make it, no worries--you'll be there in Minyan spirit and we'll carry the torch all the way to the campfire. I sincerely hope ye faithful had a jazzy day and you managed to put some jingle in your jeans.
Fare ye well into the bell.
position in silver
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