The Boston Red Sox Win Another World Series

Equities start the day slightly lower as the Boston Red Sox win another World Series. If you are reading this in Boston, or you are a Boston Superfan, congrats, enjoy your victory parade (one of my best friends is a Boston fanatic, I have to live it daily. Can you imagine having someone talk to you on Bloomberg about Tom Brady day in and day out? Kill me. It’s like hearing about DCF analysis nonstop). That being said, you are now on a “no angst for a long time” program. You have decades of built up sports equity, the world will not allow you to retain your “it’s our time, we deserve it” mantra. That’s now reserved for my team, the Cubs, and if anyone is “due” it’s us. So what’s up in the market? Fed brought nothing new to the table yesterday so I’ll skip what you already know. Suffice it to say Bernanke will not be tapering in December, there’s no way he’s kicking off a glow stick rave with a new DJ coming to town. I found another chart you might like, run this one thru your wash cycle and let me know what you think. What’s so important about hedge funds selling stock? Because it’s a prime example of why the market continues to rip. The more people take off the table, the more pain a rally inflicts. At least that’s my take on it, I could be wrong. Maybe they are calling top and I’ll look back on this as a genius move. I just feel like this year, right now, taking chips off the table with 2 months to go is risking a giant miss. Anyway, let’s see how this monster mash acted today.

After the open we sold off on the best Chicago PMI print in 30 years (relative to expectations). 65.9 vs 55.0…wow! How about New Orders coming in at 74.3, the highest in over a decade! Man, Weiner circle must be absolutely killing it right now (if you don’t know what I’m talking about you need to visit Chicago with a native). Unfortunately we got no boost out of an amazing macro print, and when markets sell on good news, you know they are overbought. Actually, now that I think about it, are we transitioning to a “good news is bad news because taper” market? You know, forget I mentioned it, I’m so tired of talking like that. Markets do what they want to do for reasons none of us will ever understand. FB had an interesting day, let’s chat about it shall we? They crushed earnings last night, Zuck made about $3B in 30 mins, then they mentioned slowing teen usage and the thing came cratering in. Slowing teen usage eh? Maybe it’s because my Mom, Dad, Grandma, and Aunt Jessie are using the thing daily to show me pictures of award winning Zucchini and Shih Tzu dogs. I’m shocked teens don’t want to rage at that house party, SHOCKED. Anyway, people shook off that crazy reason to sell and it ended up on the day (+5%). Other winners EXPE (+17%, wow), HAR (+12%, double wow), MCHP (only + 7.5%, no wow for you) and PRGO (+7%, try harder next time). Losers AVP (-23%, I’ll give you a yikes), WTW (-19%, hey losses are supposed to be weight related here people), JDSU (-11%) and WDC (-5%). Whatever happened to wax lips? Does anyone remember getting these for Halloween? I haven’t seen them in years, and I bet my kids wouldn’t have a clue what to do if they saw some. Is that a good or bad thing? By lunch we sat on unchanged, 1,764, as the market meandered around.

The last hour saw us fade lower and close at 1,756, down 40bps. Why the fade? Again when good news gets sold it usually means we’ve run out of gas, which is ok. A pullback would be fine, we have plenty of dip buyers ready to pull the trigger. A 5% correction in early Nov would set us up perfectly for the rip into year end. So embrace it, don’t fear it. What would you do if we fell 5%? Would you have your buy list ready? I hope so. Earnings are almost over, 356 companies in the S&P have reported so catalysts are going to become scarce. I say bring on a few tricks before we get our treats, oh and welcome to the last two months of the year (there are only 40 settlement days left. Cue the Queen song…).

Final Score: Dow -47bps S&P500 -38bps, Nasdaq -23bps, Rus2k -48bps.

 

News Highlights:

We’ll end tonight with two links

 

The first appears in my recap every Halloween, it’s the intro song to one of my favorite movies ever. I love it so much.

 

The second is for the 99.9% of you who won’t watch that link because you’d rather see people hurt themselves. Shame on you.

You are missing a brilliant piece of movie making, I weep for humanity. As an aside, why do so many people say “are you ok” in these videos when clearly the person ISNT?

 

Have a good night.