Random Thoughts: Tuesday Turns Again
Markets made up ground after a gloomy Monday.
Editor's Note: The following content is a continuation of the real time vibes posted on our premium Buzz & Banter in Random Thoughts: Will Merrill Spur the Herd?
Is Turnaround Tuesday for Real? - 12:36 pm
There is a difference between a trading low and a market bottom. This we know and this we've spoken about.
With that said--and with a conscious nod to the big picture--we would be wise to remember that trading lows occur in the face of negative news (such as, say, Merrill (MER)). Other shoes could drop, (particularly if other banks mark to market) but we must always see both sides of the trade.
A higher low for banks (and the market) is a clearly constructive technical element. Through that (singular) lens, S&P 1235 and BKX 60 newfound technical support.
One step at a time...
Pencils Down! - 12:48 pm
The following are poppin' through my crowded keppe:
- It's an honor to work with such a fantastic team at MVHQ. Truly humbling.
- If we can learn a lot just by watching, what is the laggy action in Research in Motion (RIMM) telling us?
- Please remind me to bring in my corks for my forks when crude trades par before the election.
- Mr. T Gold Indicator. Genius.
- A shiny forehead at 39? Seriously?
- With an estimated $16 billion write-down being whispered around the Street, I can't help but think: Citi (C): Hug it or Hate it?
- My ex called me a bad lover and I said "How can you tell in 30 seconds?"
More Answers that I Really Wanna Know... - 1:42 pm
Why am I perturbed when someone stops the elevator doors with their hand after they've begun to close but it's entirely alright when I'm that guy?
Have you written "there's no shame in admitting it's hard--there's only shame in ignoring that it's hard" on a sticky note and affixed it to your computer?
Forget jumping the shark--has Hoofy stolen the shark?
Seriously---isn't the fact that Research in Motion (RIMM) is up a buck telling that supply is lurking in the wings?
Why is it that the last bite always the bite that ends up on your shirt?
Flow's Diner - 2:18 pm
I've just got this show from one of the biggest brokers on the Street:
"We have been 4:1 better for sale in the financials today. Our flows are dominated by hedge funds today and we see shorting into the rallies and short covering as they get squeezed elsewhere. Seeing selling in Regions Financial (RF), Citigroup (C) and Wachovia (WB) and short covering in Merrill (MER)."
While I'm all about the Turnaround Tuesday vibe--and I'm conscious that the potential for forced selling exists between 3 pm and 4 pm--I view the above blurb, in a vacuum, as bullish--not bearish.
For what it's worth....
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