Rates Break Loose and Bucky Gets Lucky
March 6th, 2006 by BWV
The stock markets finally got a little skittish about the quick spike in interest rates. The 10-year yield has gone from 4.50 to nearly 4.75 in just four days. It was last this high in June 2004.
The chart shows the upside breakout from the 18-month trading range.
This seems to me like a strong “impulse” move.. similar to what gold did in December and January.. the kind that tends to kick off a new Bull market. Problem is, a Bull in yields is a Bear for bonds and stocks.
The good news tonight is that “Mad Man” Jim Cramer mentioned Atheros (ATHR) on his widely followed show, and the stock was up a quick $1.50 after hours. There is no skill in catching one of these wacky events.. but I’ll gladly take it. Aside from my good fortune, the problem is that his reccomendation gets a lot of suckers into his stock of the day, and this usually ruins sustained upside until they get shaken out.
ATHR will probably gap way up tomorrow as religious Cramer followers come storming in. I have a meeting out of the office during tomorrow’s 9:30 market open, so I’ll be putting a few limit sell orders out in the premarket… some close to the action — it will be trading big volume on Instinet by 8:05 AM — and some at truly ridiculous prices.
(If not executed in the pre-market, those orders will remain live when official trading begins)
I haven’t caught a Cramer reccomendation in a while now, and am curious to see if my offers get snatched up.
The saying goes: “When the ducks quack, feed them.”
Long ATHR
