Slingshots and Samson
Who's this Sally chick?
Now Samson and the lion, they got in a tack,
Samson he crawled up on the lion's back.
You read about this lion, he killed a man with his paws,
But Samson got his hands around that lion's jaws.
Good morning and welcome back to the storming. While Rita has passed and the damage is done, the minxy assessment has only begun. It's been a tough pill for the critters to eat but the show must go on for the clan on the Street. "We knew that this beast was gonna be tough," said Hoofy the bull of the hurricane stuff, "but we've been through worse and enough is enough and the Matador Crowd is calling Boo's bluff!" Will the bovine arrive to rescue the tape or is that too cute for the bulls to escape? We'll know soon enough as we get set to thrill and ready anew for a romp in the 'Ville.
As weather maps slowly fade from trading screens across the Street, the great debate is set to begin. While the ramifications of the twisted sisters won't be seen without the benefit of hindsight, the A.D.D trading community has set their sights on more pressing matters. Five short sessions separate pen from quarter-end paper and portfolio managers around the world need performance (and they need it quick). Whether that becomes self-fulfilling or creates a Texas turnpike sized bottleneck is focus one in our weekly fun.
Lost in the satellite sauce last week was Elmer's insistence on shoring up the interest rate landscape. I suppose we can't blame him for being conscious of inflation concerns--we've been feeling the pinch for some time as we struggle to fill up our tanks and keep up with the Dow Joneses. While the storms will shoulder blame from the board room to the Beltway, the educated consumer knows that they're not the culprit. The fiscal imbalances have been percolating since the bubble burst, spinning seemingly out of control to anyone not watching the mainstay averages.
Will this matter, does it now? Elmer would answer if he only knew how. And he'll have his chance on Tuesday when he steps to the mike and shares some all-of-a-sudden honesty . Given his recent ramble while dining on escargot and fine wine, traders would be wise to watch the tape for some tough love from the Fed chief. Those words, along with potential preannouncements and a spate of technical resistance, are the caveats in the quater-end bull case.
Slingshot Sally sought several conditional elements to spawn and, thus far, she's gotten exactly what she needed. The pre-market futures are giving her the wink but it remains to be seen if she'll have the moxie to carry the baton into October. I would expect an initial probe (lower) this morning followed by a spirited attempt higher. From there, the collective psychology will dictate the quarter-end script as we balance upside momentum vs. looming fundamental bombshells.
And finally, Alice, some housekeeping:
- Our Ruby Peck Foundation Katrina (and Rita) relief push is entering its final week. You can help support our mission by donating directly to our effort-100% of the proceeds will be distributed to the cause-or by bidding on the snazzy gold coin that Professor Laurie McGuirk donated. Please note that the winner of the auction will also receive an open invitation to join us at the Succofest of his (or her) choice!
- We'll be hosting a fall football Minyanfest on Sunday, October 23 at 4:00 pm in New York City. These gatherings are an excellent opportunity to kick back and expand our collective networks by putting faces to the names and paws to the critters. Please join us if you're in the big city for some pigskin, cool brews and tasty tidbits.
- Finally, as discussed late last week, I'll be traveling to Israel Thursday afternoon to spend the front end of the holidays with close friends and family. There was a long stretch of my career that I wouldn't think of missing a few days of the flickering ticks but I'm trying to practice what I preach and balance a bit. I have supreme confidence in my fellow scribes to carry the critter torch and will thank you in advance for understanding my absence.
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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