Posted on 04/03/2010 9:04:21 AM PDT by SeekAndFind
These aren’t your grandfather’s financial markets anymore. They’re far from "free," and have been so for quite some time.
That's not sour grapes as much as an honest assessment. It’s now crystallized that our financial fate was deemed a matter of national security during the first phase of the crisis -- perhaps for good reason. We were thisclose to the abyss and most folks can’t fathom the other side of that trade.
I'm reminded of what I said in December 2007, however, with regard to what worried me most. "We're trading at all-time highs in the DJIA, but nobody really feels like we're trading at all-time highs." The same can be said for our present day fray; after an 80% rally, the ‘tude is rude on the street and beyond.
With the second quarter upon us, that conversation is a philosophical one. Our task at hand in the near-term is entirely more practical. Following the finest first quarter since Cher topped the charts, fund managers are scrambling to keep up with the Dow Joneses. From greed to fear to greed again, the cycle is perpetual.
That's sparking an early bid as quarterly flows find a home despite the bummerooni that is Research in Motion (RIMM). The world awoke to the stark reality that Blackberry users are defecting. Minyans were ahead of the crowd -- again -- with the financial news you needed to know before you knew you needed it.
Big picture concerns aside, our stair-step lens dictates that the bulls have the ball above S&P 1150 and BKX 50. Sideways action, while boring, is bullish (basing) above support and bearish (churning) below resistance. The next meaningful resistance arrives at S&P 1200, if and when, and we’ll see a truer tone emerge once quarterly inflows are placed.
Random Thoughts:
* We often touch on societal acrimony because it's everywhere. Sometimes we point to certain situations -- like this disgusting video game -- and other times it hits closer to home, like Wednesday night when one of our own was jumped and beaten while jogging in Prospect Park.
* We always strive to see both sides in the 'Ville. Now you do, courtesy of Professor James Kostohryz.
* Boredom rarely precedes profitability.
* I’ve long been of the view that in the next-gen digital landscape, traditional networks -- CBS (CBS), ABC (DIS), NBC (GE) -- are channels and portals -- (MSN (MSFT), AOL (AOL) and Yahoo (YHOO) -- were the new networks. It’s a fascinating evolution to witness, particularly given the emergence of social networks. Peering around the next corner, content will be fully customized for, and defined by, the end-user.
* The softer side of the master beta stocks -- Amazon (AMZN), Research in Motion, Apple (AAPL), Baidu (BIDU) -- shouldn't shock anyone as they were bang-for-the-buck ketchup plays into quarter-end and fund managers are likely peeling out of that exposure despite what appears to be quarterly equity inflows.
* We spoke about the importance of BKX 50 earlier, here's another lens -- trendline resistance from the all-time highs at precisely the same time the trillion dollar plus mortgage buyback program comes to an end. Thanks Minyan Vinny for the eyes.
* That, in many ways, is the vision for the Buzz & Banter -- allowing folks to shape an information profile the way traders craft a risk-profile. Buzz 3.0 is being adopted all over the street. If you wanna explore this new-fangled community tool specific to financial services, give us a ping. We are, as always, at your service.
* This is a pretty snazzy Petty cover. A friend of the devil, indeed
* The homies -- which led us lower -- can rally an additional 35% and still be in a defined downtrend?
* With volatility levels as low as they are I told Hoofy he should hedge his bets and hope he loses that insurance premium. I also told him I would lay 1,000,000-1 that the next 16 points on the VXO is to the upside.
* The yield on 10-year Greek government bonds has increased 24 basis points since the bailout blueprint?
* Is Boo stopped out?
* The next time someone gets copped an attitude, why not give them the benefit of the doubt given how tenuous the times are? Doing something Joel -- a random act of kindness -- goes a mighty long way in this day and age.
* If you could rewind and redo anything over the last ten years, what would it be?
* Fast-forward ten years; how would you answer the same question?
* Given the short squeeze on the heels of S&P 1120 and S&P 1150, who is left to cover their shorts? And won't scared and scarred bears cover the first dip? I’m reminded of this emotional continuum, yet again.
# We’ve got three days of down time in our immediate future, full of March Madness and spring gladness. Make it count, Minyans, and remember to be thankful for what we’ve got, gratitude is latitude.
# May peace be with you.
Readers of this article may want to Google up Milton Friedman’s comments on “Greed”.
Ping a greedy ping
Ah...these markets must need regulating by Obama....
Pleeze save us from these evil profiteers!!!!
/sarc
Re-inflating the fraud bubble...what a surprise.
I wonder if the same people who lost their butts in the last crash will get in about now and lose again in the next one. The market today is filled with funny money every bit as much as it was before. Of course, it is government funny money, not private funny money.
We’ll see what happens when interest rates leap up.
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