Another Hair-Tearing Exercise for the Bears
- Joshua M Brown
- October 22nd, 2012
Hi gang, just checking in from LA and already bitching about my hotel's wireless sitch five minutes into my stay
Quick observation on the markets today, I was out of pocket so I'm just now catching up with what I missed.
Today looked like it would be a continuation of the action late last week with universal selling and a drip lower throughout the day. Except at 3pm, the sellers disappeared and the market erased a half-a-percent deficit in 90 minutes, closing in the green.
This day should've gone to the bears. The earnings news has been atrocious and the guidance even worse. But hilariously, even this minor victory was snatched from them once again - no breakdown, no major sell signal and, just to bust some balls, Apple even led the charge for old time's sake.
One of the classic rules of comedy - if you pull the chair out from under a guy, it's really funny. If you do it again, it's still really funny. Then the third time, it's not quite as funny. The fourth time it's not funny at all. The fifth time you pull that chair out from under him, it's just downright mean and the audience gets angry.
But then the sixth time you do it - the fact that you had the nerve to do it a sixth time! - well that sixth time it becomes funny again. It's uproarious, the crowd cannot even believe that you're doing it again, it's side-splittingly funny.
That's where we are now in the S&P and those who've been fighting it. The false breakdowns on bad news followed by inexplicable rallies stopped being funny for a bit - but now they're back to being hilarious again.
Another tear-your-hair-out day of frustration for the shorts, the heavily-in-cash crowd and the please-let-it-dip-so-I-don't-have-to-buy-the-top guys.
Anyway, if anyone needs me I'll be auditioning for a real Hollywood movie role in the San Fernando Valley this afternoon. They asked me to take a blood test prior to filming, not sure what that's about so wish me luck.
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The Reformed Broker is a blog about financial markets and the economy. Joshua Brown is a New York City-based investment advisor for high net worth individuals, charitable foundations, retirement plans and corporations... More.