Enthusiasm Isn't Enough

 | Nov 04, 2013 | 4:51 PM EST
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Calm before the calm? This is some benign session where we have some real recovery stocks and some moves that can't really be explained by anything other than animal enthusiasm.

I am particularly gratified by the turn in fortunes of Joy Global (JOY), Linn Energy (LINE) -- which should be higher -- and Yum! Brands (YUM), which has been a nightmare.

But I am totally mystified by the percolation of Chipotle Mexican Grill (CMG), Netflix (NFLX), Tesla Motors (TSLA) and SolarCity (SCTY).

There is nothing new at Chipotle and Netflix that should have them reigniting like this. In fact, it's unnerving to see these go up on vapor. They need to cool down already.

But the two that most fascinate me are SolarCity and Tesla. These are about to report, and it is almost as if the shorts have thrown in the towel ahead of the quarters, betting that Elon Musk will be able to orchestrate short squeezes, as he is as much of a stock jock as he is an operator.

Someone on Twitter attacked me this morning for not taking a stand on some of these stocks other than to call them cult stocks. What am I supposed to do? I have identified them as stocks that can keep going up regardless of earnings, but I can't recommend stocks that will go up endlessly on no earnings.

It's simply a matter of trust: I understand they will go higher, but they have to do it without me. What more can you ask? 

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volatility is quite low here, and we could see some downsides here in the short term. ...



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