Cuttone and Co. Inc.

(With apologies to Edgar Allan Poe)

I was enjoying a libation recently at one of those old-school downtown bars that traders have been known to haunt long after the reverberations of the closing bell have faded away, when deep within the dim chambered recesses of the tavern I spied an old, spectral trader whose trading floor tenure began as a squad boy in the legendary days before the crash of '29. He had certainly seen his share of market horrors during his years in the trading crowd, so I decided to avail myself of his wisdom. As I slid into his crypt-like booth he ordered another potion

CONTINUE

In recent months market commentators have been tossing around inflation warnings as frequently as pigskins at a tailgate party, yet investors continue to have faith in the Fed’s ability to maintain a low interest rate environment well into 2010. Buyers have been snapping up record amounts of treasury debt and the prospect of continued low rates is helping stocks maintain their upward momentum. Yesterday’s session amply rewarded the true believers and prospects for further gains look good.

Three out of four earnings reports have beaten expectations in this reporting

CONTINUE

As earnings season kicks into high gear, investors are feeling pretty good about life and their portfolios this morning. The market's terrific third quarter has lifted spirits despite serious concerns about the economy. Emotions have turned overwhelmingly positive and I'm not sure that's a good thing.

If you spend much time in this game you recognize that investors aren't always rational, despite a couple of decades of business school instruction to the contrary. As winnings translate into positive feedback loops, new money comes into the market and drives prices even higher while word

CONTINUE

Its always tease, tease, tease…

The market has been trying to make up its mind for weeks now, vacillating back and forth as contradictory economic data buoys the bulls and bears in turn. Market forces are in such balance that it doesn’t take much to sway sentiment. Yesterday’s ISM non-manufacturing data revealed a just-barely expanding service sector, yet the resulting rally took the Dow up 112 points, largely in reaction to Goldman Sach’s upgrade of the big banks; a move that left the shorts down on their knees.  A lot of traders are convinced that the minor correction of the last

CONTINUE