By Todd Harrison Aug 10, 2004 3:25 pm
May peace be with you!
The fortunes of fables are able
To sing the song
Now witness the quickness with which
We get along
Elmer hikes into the 'Ville with a quarter point boost and measured language. While he humored us with transitory energy concerns, the lion's share of his text was photocopied from the last go 'round. My instinct is that he didn't wanna roil the markets and his wish has thus far been granted. We've been keying off the breadth over on the Buzz and it never budged during the stress test lower. That was Hoofy's signal to declare "game on!" and his bovine brethren were happy to climb aboard.
Today's jig was a welcome respite but Matador City remains on yellow alert. The outstanding gap between S&P 1075 and 1080 is getting filled like a jelly doughnut, but we know how important the latter level is. The saving grace for the bullish race may be the intermediate term stochastics which seem to be "hooking in synch." They're not timing tools, mind you, but I'm sure Hoofy is glad to see them in his back pocket.
Not much has changed from Boo's perspective, as he's viewing this lift as a short side retracement. The sharpest legs of a sell-off occur in oversold conditions, he knows, and this simply serves to suck in fresh capital. Technicals are broken, fundies are decelerating.....ah, you know the drill. Higher prices don't change the landscape and the reasons for his bearish bent remain in tact.
The Cisco (CSCO:NASD) kid will soon ride into town and Chambo will likely be his optimistic self. How the market receives him--and Elmer with the benefit of time--remains to be seen. As it stands, the VXO (volatility index) has burped back another 7% and we've yet to see any meaningful volume when the screens are green. These are all inputs that must be factored into our risk profiles as we weigh the metric fray.
I'm gonna hop on over to the Buzz and ride out this turbulent Tuesday. I'd be lying if I said I wasn't looking forward to taking next week and readying for our mountain gathering. It's been a long time since I've turned off the screens and it'll be refreshing to kick back and pen a kick-ass presentation. It'll also be noice to put faces to the names--Minyans and professors alike--as the 'Ville comes to life and we focus on the important stuff.
Fare ye well into the bell.
No positions in stocks mentioned.
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