The larger the bird, the longer it takes to cook.
Luckily, the handy red timer thingy pops when the bird of any size has roasted to perfection.
Why then, do some people still overcook or undercook a turkey?
Perhaps, it’s because they ignore the pop-up technology.
The market’s indices made new all-time highs.
Not surprising given the bullish sentiment, especially in Technology or Sister Semiconductors (SMH.)
The theory I go back and forth on-the Fifth Wave of Disbelief-assumes the last of the bears finally throw in the towel.
And then, the blow off rally begins.
For now, we can compare the bears to those who ignore the market’s pop-up timer and therefore undercook the turkey (or underbuy equities).
Weary after a rough night eating undercooked turkey, the bears swear that turkey is bad for you (swear that the market is topping).
And then, they are invited to a professional cook’s house, eat a perfectly roasted bird, and decide to eat turkey every day thereafter.
The Bears declare, “Turkey (the market) is amazing! Gotta get me more.”
But, what about those who overcook the turkey (or have too much exposure in the market?)
Those are the bulls that see the market timer pop and think they should cook their positions even longer.
They might figure that more marinade adds to the flavor without compromising taste.
This is the dilemma of both the bulls and the bears as we head into Thanksgiving.
Both bulls and bears are home for the holidays. What will turkey talk at the dinner table look like?
A market on new highs? Bears still predicting a top? Bulls loaded up mainly in the tech sector?
A volatile geo-political climate? A seasonally strong period for stocks? A changing of the guard at the Federal Reserve?
A quarter of unusually strong corporate earnings? A tax reform uncertain?
A brick and mortar sector trying to rally yet still on the precipice of collapse?
Whether one eats too much under or overcooked turkey, one side effect prevails-tryptophan overdose or “feast-induced drowsiness.”
However, studies show that turkey has no more tryptophan in it than any other poultry. Perception. Ah!!
As a vegan, I do not eat turkey. But I do eat market.
I perceive it best to be comfortably long both stocks and commodities.
This way, you can add if the bears decide to feast until the point of induced drowsiness.
Or, you can hedge against the bulls should weariness find them overcooked.
Happy Thanksgiving to all! Next Daily will be out over the weekend.
S&P 500 (SPY) After 2 inside days, once this cleared over 258.25, buyers came in. Now that number is key to hold
Russell 2000 (IWM) New all-time highs today. 150.68 the old high now pivotal support
Dow (DIA) Gapped up over 234.60-now, we can look again at Terror at 25,000.
Nasdaq (QQQ) 153.95 the new support as this made new highs
KRE (Regional Banks) 55.85 should hold now if good
SMH (Semiconductors) Wonder Woman is the 3-day rest then ok, let’s go sector. New highs.
IYT (Transportation) Cleared 173 which is good step in the direction of possibly going back into a bullish phase. Unless it fails 172.50
IBB (Biotechnology) 308 near-term support. 312 near-term resistance
XRT (Retail) 41.65 critical support failed. 41.00 the 200-DMA key to hold
GLD (Gold Trust) Confirmed warning phase with 122 good point to clear
SLV (Silver) Inside day and held 16.00. Puts 16.25 back in focus
XME (S&P Metals and Mining) Should hold 31.00 if good
USO (US Oil Fund) I see 12.00 in the not-so-distant future. Then, we shall see what this has.
TAN (Solar Energy) Digesting.
TLT (iShares 20+ Year Treasuries) 126.80 resistance now even if it traded above there intraday.
UUP (Dollar Bull) 24.35 pivotal support