Briefnote on a Pekid Tape

Michael Davey here (cleaning comments)

I’m looking to post-up a new Trader’s Guide segment a little after today’s close. In the meantime let’s occupy a little space ahead of the 30-yr bond auction; results due imminently (top of the hour).

We are rallying (so far today) on a lighter volume pace vs. yesterday. We rallied yesterday on lower volume. Tuesday was a sell-off day, but volume rose vs. the previous session.

This pattern has been very very common since the trading range bent sideways back in September. I can count the number of up-days which came on rising volume with one slightly-deformed hand. Meanwhile, the number of selling days which came on higher-volume are numerous (more than fingers and toes combined – Guinness records included).

Today, currencies and commodities are not rallying with stocks (the Dollar is firm). We saw this last week at the previous peak. CNBC cannot stop saying that the weak dollar is good for stocks.

I think they might be right on that – a weaker dollar might be good for stocks.

I cannot really buy this tape. That doesn’t mean I have to be short, but being a maniac I am taking shots where I can, expecting that we may be acting toppy for a sufficient reason.

If not, I will give up soon enough. One lives and learns, eh?

Anyone who missed Mole’s post yesterday might want to visit it now. There is a little of everything in that one, from the exotic to the exact – a medley of here and now.

But what will be??
We shall see.
See you this afternoon.