Feast or Salmon
Keep an eye on the financials, cookie--they'll tell the tape tale!
Good morning and welcome back to center stage. Yesterday's softer side of selling erased most of Monday's gains and set the stage for a Hump Day rage. Indeed, just about the only short left on Wall Street is the collective temper as anxious portfolio managers eye quarter-end. Will the fear of missing end with the kissing or will a September smack down leave them hissing? Saddle up for the ride and climb inside, Minyans, for a new day in the fray is set to arrive!
We power up our eight screens today to find sloppy bourses across the pond, the rally in gold put on hold and a dollar that got some greenback, Stella. The stateside futes are also a bit crimson, partly due to the residue from Texas Instruments (TXN:NYSE). Last night, on their mid-quarter update, they offered an upbeat assessment of their state of the union. Much like it's cousin Nokia (NOK:NYSE), however, it didn't quite satisfy the torrid pace of the recent race. While these two names offer an admittedly myopic scope of tech, the collective reaction from investors warrants attention as we edge through the third consecutive second-half recovery.
In today's weather forecast, please be advised that a Snow job is expected to arrive in Washington at 10am. That's when our Treasury Secretary addresses the House Financial Services Committee and may seek to expand his authority over Fannie Mae (FNM:NYSE) and Freddie Mac (FRE:NYSE), the two (massively leveraged) government sponsored entities that control 42% of the U.S home loan market. The implications are huge and, as we've often discussed, the ripples from the F-Troop will affect the global economy. The agenda is crystal clear: the government wants to avoid roiling the capital markets (particularly in front of an election) and issues to keep on your radar include a potential moratorium on new capital standards (think broom and rug) and increased disclosure parameters.
Please take time to read the Going Global section of this morning's Wall Street Journal (page C15). Michael Sesit offers a succinct discussion on the bubble trouble I've been alluding to for some time. While we know that helium can last longer than expected, I remain of the view that debt, derivatives, housing, psychology and (if this pace continues) technology stocks are all primed for a pin prick. I'm not sure if Mr. Bubbles can continue his juggling act into the election but I suppose that we'll know soon enough.
Talking tape, not much has changed since we've started our week. The notable deterioration in the retailers notwithstanding, the Minx continues to migrate above the recent acne support (S&P 1015-1020). Hoofy will argue that a little fear is healthy as long as we base above the breakout and, with objective eyes, I see what he's looking at. Watch S&P 1015 and NDX 1350ish as technical lines he'll be looking to toe and understand that the bulls will not go quietly. Quarter-end is a scant fifteen sessions away and you can cut the performance anxiety with a knife!
Sean Michael Mueller, Bronco fan extraordinaire and Minyan of the moment, starts the day atop our animated auction leaders board. He's looking for two VIP tickets to the Critters Choice Awards and to star in the trailer that will be featured at the event November 12th. Daisy has already booked her spa day for the 11th, so you know she's gonna be gussied up and lookin' fine! For more information about the children that will benefit from Minyan generosity, please check out the CCA site and take a stroll with the critters!
Good luck today.
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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