Oct

13

One notes that since the current Europe-is-a-disaster and the USA is-going-into-recession meme took hold, there have been several rallies — the magnitude of each has approximated a typical year's S&P gains. Each one of these rallies persisted for approximately six to eight trading days. Using the same rubric, today is day seven. Primarily because I only have ten fingers with which to count, I predict that this rally will go to 11. (Ok, I'm joking. The real reason for my prediction is the insights and inspiration that I've gleaned from This Is Spinal Tap.

Victor Niederhoffer writes: 

The sensibilities of those buying the refunding are always hurt by even a
momentary loss, and like night the day the flexions let all the bad
news out before the auctions so these sensibilities will not be
offended. I always think of Enoch Powell railing against a price fixing
board whose sensibilities were offended by a recipe for Bearnaise sauce
that they didn't feel justified an increase during the English march to
agrarianism and the EC.


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5 Comments so far

  1. Ed on October 12, 2011 1:03 pm

    The European crisis in a nutshell: Fear manufactured to entice investors into separating with their quality securities at unfavorable prices.

    “F” the crisis.

  2. steve on October 12, 2011 1:49 pm

    1220 on the S&P is the magical number. market could get there today. currently s&P above 20 and 50 day averages a cross over for the 20 day could push the average up to the 1280 filling the august collapse. failure could be a grim sign that we head back to 1120.

    Then again it could be Colonel Mustard in the kitchen with a wrench.

    Remember the words of Mark Twain as to the risky months in the Market.

    And Teddy Roosevelt “Remember the Maine” ( strike that it does not apply here.)

  3. steve on October 13, 2011 5:52 am

    Market put in a topping tail at the 1220 once and is currently above the 20 and 50 day MA 20 looks to turn up and cross the 50 soon but not today.

    DANGER WILL ROBINSON?
    or
    FULL SPEED AHEAD

    Perhaps it is time to ask Mr. Whoopee he knows everything. Not I said the sheep.

  4. duncan on October 13, 2011 8:26 am

    There must be other market lesson we can learn This is Spinal Tap. In my experience trading I note there are times when positions spontaneously explode, like the affect on drummers in certain late 70s rock bands. And in trading as Tap so eloquently expresses, "Its such a fine line between clever and stupid"

    ps I want to see & hear a Rocky/ Nigel Tufnel impression one of these days…

  5. Sam on October 13, 2011 1:11 pm

    In summary, the market’s currently at 1200, and could go up or down 80 points.

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