TSTC 2 new trader picking up TSTC Jeff Farley Trading in the Zone and Rev Shark adding again Real Money piece just out....
Beware of Exuberance
By Rev Shark
RealMoney.com Contributor
10/22/2010 10:31 AM EDT
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We off to a choppy start with some of the good earnings reports from the likes of Baidu (BIDU - commentary - Trade Now), Riverbed Technology (RVBD - commentary - Trade Now) and Chipotle Mexican Grill (CMG - commentary - Trade Now) leading the action. Oil is up and commodities are mixed as market players watch the dollar very closely.
One thing that makes me a bit nervous today is that everyone is extremely aware of the tendency of the market to do well on the Fed's Permanent Market Operations ("POMO") days. When you have a major broker like Goldman Sachs basically saying to just buy on those days, you have to wonder if it is time for the obvious trade to stop working.
I came into the day with very little on my watch list, and that hasn't changed so far. I added a little Telestone Technologies (TSTC - commentary - Trade Now) as it tries to move up after three days of consolidation. I also took some ProShares Ultra Short Russell 2000 (TWM - commentary - Trade Now), as I'm concerned about the small-cap action, but I'm not doing anything too aggressive there yet. The market is holding up, and I have no interest in fighting the Fed unless the selling pressure starts to accelerate.
At the time of publication, DePorre was long TSTC and TWM.
