The Day Ahead: Stuck On a Lame Exercise Tape
"Train or die" -- Undisclosed personal trainer I now follow on Twitter.
Twitter is a fascinating place to chill. Each day one awakes to find a comforting bombardment of information from throngs of people who would absolutely recognize you in the street, thanks to that one magical comment of yours that got retweeted months earlier. A company like Salesforce (CRM) is helping others to manage their brands on Twitter, unbeknownst to many Twitter faithful. As for myself (@BrianSozzi), I use Twitter partially in order to find inspiration to gauge the mood of the equities market. There is nothing more energizing than finding that one interesting quote that lays the foundation for a multitude of investment ideas.
Today, I am reminded of the "train or die" quote from a personal trainer I decided to follow on the site, as it perfectly sums up my feelings on the market. For the past three weeks or so, I have been willing to run with the bulls, as there were decent enough reasons to get long a "sentiment-driven rally." However, throughout the ego-stroking, there was a little person inside undergoing intense training exercises in preparation for the inevitable -- a pullback in the market that lasts longer than an hour or a single session. Every waking minute there I've devoted maniacal attention to note-building so as to not get caught flat-footed on the next decisive move, which is evolving as one rooted in profit-taking.
The market is involved with a lame Richard Simmons-esque 1980s exercise program. That is, it prefers to hang on to belief in well-discussed themes, as opposed to graduating to a P90X-style plan of figuring out why we could be stepping on eggshells for most of September.
Soz Brand Workout: One Gear, All Out
What are the transport stocks saying?
It's one thing to proudly state, after finding a colorful chart, that the underperformance of transport stocks does not confirm the rally off the June lows. It's quite another to understand the message. The way I think about it, the transports do not believe the incrementally improving macro data trend, and I suspect it will unwind in a historically dour month for stocks in September. New-order trends in manufacturing reports, and continued focus by retailers on lean inventory management, lend credence to this view.