Monday, March 22, 2010

Market Commentary By Art Cashin March 22, 2010 $SPY

Cashin’s Comments
On this day (-2) in 1902, one of America's most amazing inventors demonstrated one of the most amazing devices of the 20th Century. His name, of course, was Nathan B. Stubblefield and the device was nothing less than the radio. (Wait, you say! Didn't Marconi invent the radio and who the heck was Stubblefield?.....You really did sleep through sixth grade didn't you? Hang on remedial help is here.) On this day (-2), Stubblefield stood aboard the steamer Bartholdi, afloat in the Potomac, and broadcast his voice to several devices ashore. Stubblefield had been invited to Washington to show off this amazing device which he had been showing around his hometown of Murray, Kentucky for decades.

To put this in the right time frame, let's compare things. Marconi had managed to send the letter "s" across the
Atlantic just four months before. The "s" was in Morse Code since Marconi was actually working on "wireless telegraph", not radio and voice transmission. Stubblefield had been broadcasting voice and music around Murray, KY since 1892 when Marconi was still in grade school. Stubblefield was one of those classic American tinkerers. The search was the goal itself. He also had a big dose of paranoia - fearing his invention would be stolen. He was slow to get a patent. Finally, in 1908, he applied for a patent including an application for radios in automobiles.

Stubblefield continued to putter rather than prosper. Others adapted his ideas. His house burned down. His wife left him. He turned more reclusive. Yet he tinkered. Some claim that he made discoveries even more dramatic than radio. We'll never know. Perhaps fearing that others would steal his ideas after his death, Stubblefield burned all his plans and prototypes before he died - of starvation in 1928. He was buried in a nameless pauper's grave.
Unrecognized genius and squandered opportunity have always been part of America's history - even on Wall Street - believe me!
There weren’t many signs of unrecognized genius in Friday’s trading session. But there were a few signs of squandered opportunity – particularly by the bulls. Expiration Influence Withers Under Currency Pressure – The stock market began the expiration session in plus territory. By 10:00, however, currency pressures, responding to
indications that a Greek rescue mission was devolving, began to weigh on stocks, crude and gold.

In mid-morning, as European players were heading to crib, or, at least, late dinners, the Euro dipped further and the dollar (DXY) rose. The resultant pressure on stocks, oil and gold was immediate, apparent, and undeniable.
The dollar rise/asset weakening slowed and almost stabilized in late morning. Stocks moved choppily sideways until about 1:30 when the dollar spiked briefly sending stocks to a slightly lower low. Again things stabilized somewhat until another down spike in stocks early in the final hour. “Market on close” buy orders lifted stocks off the day’s lows and cut their losses in half.


Market Commentary By Art Cashin March 22, 2010 $SPY

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