David Copperfield ain't got nuthin' on the stock market. Making a scantily-clad assistant float above a table is old school magic. Try levitating the S&P 500, as the bulls have managed to do this month, with no support strings whatsoever! The performance has left a lot of people... including bulls... gaping in wonder. I remain convinced, however, that the market's next trick will be a disappearing act.
Intel shares defied a drop in the SOX by shooting up nearly 3%. The strength was a product of more smoke and mirrors from CEO Otellini, who spewed a bit of banter about Intel having regained its technological lead. Most of what Otellini had to offer was promises about new fabs opening in 2008 and what sorts of efficiencies will be in place by the end of the decade. It just demonstrated once agan how optimistic traders are always willing to soak up positive words, no matter how empty they are, and drive share prices higher.
At least metals managed to gain some footing. The gains weren't great about a half percent for gold and 2% for silver but mining shares saw a bright light, rising nearly 3% as a group. It remains to be seen whether this is a technical bounce or a turning point. For the record, I have not committed much capital to the game, just yet.
Disclosure: Short INTC, Long INTC Puts
I will be travelling Wednesday and Thursday. The next daily post will occur Friday, September 29.