Today Doesn’t Matter

Ignore the tape. Columbus Day was invented to torture people in the money management business. Everyone is off, relaxing near a flaming barrel of garbage, but idiots in the “investment community.” As a rule of thumb, I ignore thin trading days, like today, like the fat chick at the end of the bar. Should the market reverse lower today, taking your intraday gains with it, don’t get all worked up about it. For the most part, if you are a meaningful person, in any way, you are not working today.

Going into earnings season, my expectations are very high. I believe there will be many, many earnings beats, especially from semi’s and commodities. I do not think we are at a point where inventories need to come down, following the recent ramp. As you know by now, the consumer is buying LCD teevees as if they were bags of rice. And, with oil, natty, copper and gold exploding to the upside, it will be extraordinarily hard for commodity related companies to miss expectations.

If anything, as input prices rise, pressure may reappear on the balance sheets of consumer goods/service companies. Keep an eye out for that sort of bullshit. Because, without a doubt, “The Attack of the $100 Tomato” will snuff out this recovery—faster than The NY Mets waste payroll.

Bottom line: go eat a sandwich.