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Three Little Bears


From our family to yours, all the very best!


"Yeah, man just kinda... you know, you got these claws and you're staring at these claws and your thinking to yourself, and with these claws you're thinking, "How am I supposed to kill this bunny, how am I supposed to kill this bunny?"

--Trent Walker, Swingers

Ya gotta love the irony. Last night, over a spate of Rosa Mexicana's infamous pomegranate margaritas, Fleck, Succo and I settled in for a long overdue mind meld. As you might imagine, the tone of our conversation wasn't particularly equity friendly. With each passing libation, another worry was put on the table. By the time we got to the DRAM overcapacity, Boo was downright sloppy! Fur blur!

I suppose it was poetic justice that we awoke to an Intel spell (INTC:NASD) and the technophiles were out for blood. They've been going cuckoo for coco puffs lately and this morning's news only fanned the flames. While validation arrived in the form of a press release, however, Hoofy's heroes have cause for concern. It might be too early to write an equity epitaph but (thus far) this is exactly the type of action that typically accompanies trading tops.

That might be a bold statement given that the techs are sticky green but the financials are getting smoked like a Philly blunt. I haven't heard anything outlandish in that sector today but we've all seen how heavy they've been trading of late. The Capital Commerce Mortgage blow-up (earlier this week) might be contributing to concerns in the system but that's old news by now. The F-troop isn't helping the cause but they're not experiencing outsized slippage either. Rate concerns? Potentially. Rotation (into tech)? Probable. Disconcerting? Absolutely.

I've been trading the piggy banks from the short side and while I've picked at them (as a function of discipline), I continue to play them that way. From a trading standpoint, they've exhibited zero bounce throughout the session and until they do, it's hard to give Snapper any props. I suppose Hoofy will argue that the market in general (and tech in particular) trade fantastic given the 2% haircut in the group and I suppose he has a point. Still, breadth is fugly, the bull camp is crowded and the Minx is ripe for some spoilage.

So you know (and if you care), I'll be on Bloomberg radio this evening at 6:50 EST offering my humble take on the tape. After that, Senor Slacker (that would be me) is off like a prom dress and while I'll be monitoring the action next week, I'm not sure if I'll be able to post. In my absence, please adhere to your discipline, quantify your risk and remove emotion from the process. September is gonna be a hairy month and I'll ask that you be tip top, shnitz hot and second to none (sir) when we power back up for the final four.

Before I go, I want to thank ye faithful Minyans for the support and encouragement you've given us to date. It's hard to believe that it'll be our one year anniversary on October 1st and while it hasn't always been easy, I wouldn't trade it for the world. What was once a dream has turned to reality and our mission of philanthropic education has only just begun. We couldn't do it without you and for that, I'm forever grateful. As my grandpa Ruby would say, "Thank you ever so much!"

May peace be with you.

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