Archives: Mish's Daily

Directing Traffic Flow During Earnings Season

Mish Schneider | April 27, 2017

I have a fascination with traffic cops. They keep track of which cars to hold up and which ones to let move forward. They watch pedestrians crossing the street. They blow whistles. They often entertain, moving their arms and legs like dancers. Anything that distracts them from doing their job can result in all-around havoc. They put themselves in harm’s way. Each day, the market has its own traffic flow. Just as some intersections get

The Miraculous Stair-A Rally of Legend

Mish Schneider | April 26, 2017

In 1878, after nine days of Nun’s prayers, a rare helix-shaped spiral staircase leading up to a loft appeared at the Loretto Chapel in Santa Fe. With no attachment to a wall and built with dowels and wooden pegs, this staircase is billed as a “miracle.” The builder, whoever he was, built a innovative masterpiece. Upon completion of the staircase, he disappeared without pay or thanks. The staircase has two 360 degree turns and no

A Matter of How Much Hot Air

Mish Schneider | April 25, 2017

A hot air balloon is made of a fabric gas bag (envelope) with an opening at the bottom. Attached to the envelope is a basket that carries passengers. The burner, fueld by propane, injects a flame which heats the air within. Hot air balloons cannot fly beyond the atmosphere. Much the same can be said about the current market rally. The envelope or fabric of the rally is buoyant. The market’s basket holds lots of

Baby, We Were Born To Run

Mish Schneider | April 24, 2017

Even this fast-running Roadrunner pauses at the Handicapped Parking sign. A bird born to run, it can outrace a human. It can kill a rattlesnake. It thrives in the harsh desert landscape. Last week, the market paused at the many potential handicap signs. This week however, the market once again proves it is born to run. Like a Roadrunner, the market eats poisonous prey with no ill-effect. Like a Roadrunner, the market outraces many humans,

How Many Traders Does It Take to Change a Lightbulb?

Mish Schneider | April 23, 2017

How many hard hats does it take to remove a sapling? Apparently five. One to control the forklift and four to stand around and watch. Ok, derivation of an old joke. However, applicable to last week’s market action. First off, while one guy does all the work, the others fold their arms and inspect. Secondly, the forklift appears like overkill considering the size of the sapling. Thirdly, the observers stand far enough away to avoid

Buffalo Bill's Wild West Show: Winners and Losers

Mish Schneider | April 20, 2017

Continuing with the Wild West theme, “Buffalo Bill” Cody staged the period with “border dramas.” Buffalo Bill’s fame as a westerner gave his shows star appeal and an aura of authenticity. The market has had its own border drama this week. The sentiment has fluctuated between fear that the talk of strengthening fundamentals are just a show TO faith that the fundamentals have an aura of authenticity. The Russell 2000, of the four indices a

Dance Hall Girls and Profits for Fifteen Minutes

Mish Schneider | April 19, 2017

Yesterday, we explored the myths and truths of the old Wild West and the current Wild Market. Back in the day, rowdy frontier towns gave rise to saloons, which in turn gave rise to the “saloon girl.” The “saloon girl,” had many dfferent names, most with connotations of ill-repute. Nonetheless, saloon girls were hired to work. These jobs offered women a rare job outside of housework. (Besides the point, but interesting.) Our girl in the

The Myths and Truths of the Market’s Wild West

Mish Schneider | April 18, 2017

Pull into Pinos Altos, NM and get a sense of the old Wild West. Trade the current market and also get a sense of the old Wild West. Both the market and the Wild West are fraught with myths and truths. Determining what is myth and what is truth makes them difficult to figure, while at the same time making them full of intrigue. For example, the California Gold Rush of 1849 was not the

The Market Awaits the Opposable Thumb Signal

Mish Schneider | April 17, 2017

On April 4th I asked, “Is Wall Street the New Sesame Street?” At the time, we surmised that Elmo is a worried NASDAQ and Abby with the lower position on the seesaw, is a cautious Modern Family. With Earnings Season upon us, we may finally get the answers to the questions: Will QQQs and the FANG stocks hold up? And, if they gain weight, could that give the Modern Family more leverage to rise or

Well-Marked Trails and Ones That Suddenly Appear

Mish Schneider | April 15, 2017

Sometimes, you head out on a trail with a specific route mapped out. Other times, you head out and see an unexpected trail to follow. Last weekend, we started out hiking a well traversed trail. Suddenly, an arrow pointing to the right appeared. Written on the arrow was the word “Trail.” We spontaneously decided to follow that arrow. To ensure we would not get lost, we built a cairn. Once we made the right, we