The Devil is in the Details
Consumer confidence numbers were so bad (39), it’s almost comedic. People in this country would rather punch one another in the face than buy another pair of jeans. Coupled with the fact that things are starting to look dicey again in Europe, there are numerous reasons to sell stocks. Keep in mind, CMI and MMM missed, as well as AKS. Letter X had bullshit numbers; but people with goat brains are buying stocks, nevertheless.
You do understand that buying here means you are Eddy Barzoon, don’t you? The people who are telling you to buy now, after a 16% rally, are idiots. Plain and simple, Cramer doesn’t manage money for a living anymore and is out of touch with reality. Might I suggest he bulk up on some psychotropics?
It’s very possible the Europeans concoct some plan that looks good on the surface. However, you cannot insure your way out of insurmountable debt. You either default or print money. Having said that, the news should be sold, several times over.
Gold is sprinting and refiners are getting crushed. The problem with the refiners here is collapsing 321 crack spreads. This is occurring due to run away speculation in WTI, which, incidentally, is compressing the spread between Brent and WTI as well. This is a lose lose for WNR. However, the moves that pissed you off last quarter with WNR may end up saving them. I am talking about their aggressive hedging strategies that stunted profits. With 35%+ of production hedged at $27, WNR is in a great position to unwind those hedges, smartly, into weakness.
321 cracks are down 15% today to $22.5.
Finally, what more can I add to the NFLX story? This is an unbelievable collapse. I am sure there will be a trading opportunity. But the downward momentum in both the stock price and business is too fast. It’s best to spectate, while poking fun at the trials and tribulations of a certain REED HASTINGS.
UPDATE: I bought EXK to get my silver on.
51 Responses to The Devil is in the Details
Any reason for the big pop in Gold a few minutes ago?
Reply
Another pimp joined the street.
Reply
Netflix recently added to streaming a fine selection of Korean films.
LOL
Reply
that includes the Korean Charlie’s Angels “Chai Lai’s Angles”
Reply
INTC leadership is the only detail you need to know…stop inundating yourself with meaningless drivel.
I think you need to start drinking coffee and eating oatmeal again.
Reply
INTC and GM Leadership…
Reply
ROFL.
Reply
Bring back the Asshat of the Year Award…
Reply
Oh, good idea. Reed will get Asshat of the year award.
Thanks
Reply
Dennis Miller doing classic schtick on Reed(taped years ago)
http://youtu.be/ZmGO_bTgIf4
omg, Sooz.. so how is steve goff?
Reply
I can’t speak for Steve but am sure he is feeling and all puffed up off this months rally.
Deep in the money protecting his package with trogans(hence the puffed up part). One of your old time faves, yes?
Not a bad idea to protect/pair all WNR(s) out there.
CHD, ah just one of my old stockpicks.
Reply
undoubtedly another classic when you called,circa 07`,into the program ranting about JC’s beautiful biceps while wearing UA and your stock pick was non other than CHD(how perfect).
I think his whole entire screening staff was fired as soon as the show was canned.
yes, those were the days. just classic!!
or..
as suggested by Fly you should shellac your WNR(s) in gold
Burgess Meredith from the Twilight Zone. Very nice. Father of Meredith Whitney.
Reply
lol. Makes no sense, but still funny.
Reply
I must say, The Fly is at his best when markets go apeshit.
Reply
Eddie Barzoon? God’s Little Creature?
Not true.
We all know it’s Tim Tebow.
Anyway, I made enough trading SMH this AM and hence forth and to wit and the legal doctrine of ejusdem generis says that based upon previous market behavior this AM that it is not tradable. It’s just gambling.
This dip shall be bought. Still too many shares sold short and still too much pessimism. This morning’s weakness will be used to close out some short positions.
Reply
Good luck. I’ll give you a few dollars for your trouble when I see you at the soup kitchen.
Reply
I’m already long in URTY since $RUT750 in the first week of August. Glad I’ve held on as I’m fairly close to b/e.
Put on a pre-expiration position in TWM. Thesis was that the $RUT would go down but not until after expiration due to the very large # of IWM puts with $70 strike. Either I was early or wrong entirely. I think the latter.
Reply
Is it TZA time? Cash? Longs? I don’t have a clue what to expect this week. This market defies reason so making any drastic move at this point would be akin to playing slots.
Scaled back some of my S-tsx just now for a 10% profit in a week.
Sold some PWE last Friday thinking we were headed to the shitters on Monday and missed yesterday’s 7% boost.
TLT
Reply
UUP cup with handle. Looks like it at the moment. Up trend.
Reply
Just go out and get a McRib.
It will cure what ails you.
I will eat two and then drive to the parking lot of the headquarters of Ticonderoga pencils (5 minutes away) and throw my wrappers into their parking lot.
Are they still in business in the US? I thought they all moved to Beijing?
Reply
The corporate headquarters for Dixon Ticonderoga Company is 5 minutes from my house ( 2 minutes from Dwight Howards) but they make their pencils somewhere else- probably China.
Reply
Also close to Don Shula’s 347 when McRibs go boring.
Reply
Where is alf ?
Reply
in the details
Reply
Fly, nice call on the insurers last weak [sic]. $TRV $HIG
Reply
I just heard that Shanghai suburban home price dropped more than 25% within last month.
Anyone know if this is true?
Reply
No, but for the sake of Vancouver I hope so.
Reply
No, it’s not true. It’s possible that the market is “nervous”, but prices are not dropping, at least not yet.
Reply
Thanks for the replies. I had a feeling it wasn’t true.
Reply
Someone say Shanghai,Yep,I will have to dig thru diary for monthly but..Sales of new homes, excluding affordable housing, sank 20.1 percent week on week to 94,800 square meters during the week ended Sunday.
Reply
CVMmmmmmmmmmmmmmmmmmmmmmmmm!
Reply
I think the EU is at such odds with one another, the only savior to this mess will be Clam action. And the Tea Party goes BAZERKO APE SHIT!!! And the Hippie’s on Wall Street overdose on acid, mushrooms, and Special K. God Save the Clam!
Reply
Yes, God save the Clam and the pension funds, retirement accounts etc.
Reply
This is a case study for top business schools 25 yrs from now unfolding before your eyes. This is QE 3 type action we’re seeing today. Crude/Gold – Dollar failing/Foreign currencies rallying back as if there is no concern. Austerity coming to America!!
Reply
“It’s best to spectate, while poking fun at the trials and tribulations of a certain REED HASTINGS.”
Reed Hastings sold all the way to 300$ and is still selling while you are buying. He is making his way to the bank while banks closed doors on you.
Lol @ you, silly man!
Reply
Hastings lowered prices to create growth but can’t profit off these prices so rather than gradually grow them he doubles them overnight, comes up with some crazy ass idea to double prices and rename it “quickxxxxter” and then realizes how dumb it is so he changes his mind and holds a conference call where he’s basically not giving a crap about. He is Nero fiddling while Rome burns. The real idiot is you though because you will be banned in all likelihood.
Reply
Who cares about companies? One time all companies die. You just witnessed the death of Eastman Kodak. GM, AIG, Lehman Brothers…..
How much money did you make out of it is what matters! You probably won’t understand it.
Reply
Of course we are going to poke fun of him regardless of how he did trading his own stock. Regardless of his early success, History will look upon him as the idiot who ruined a golden brand virtually overnight.
Reply
Case in point, do people care about how much money Nero made or the faked that he played the fiddle as Rome burned?
Reply
Question I got at flys last night, early morning Old Salt says: October 25, 2011 at 4:31 am
TNA question for you. Why is there such disparity between adjoining month values in the copper futures chain?http://finance.yahoo.com/q/fc?… …The Answer is that the large up % months have had no recent volume in them, every month that is down today had bids in them.
The drop in NFLX makes it tempting, but the advice to wait is sound.
On the way up, you hear all the good news about a stock – the future’s so bright, you gotta wear shades.
On the way down, all the ugly warts are publicized and examined. There’s a nice article on The Street discussing how the huge ramp up in content acquisition costs at NFLX has mostly not yet been recognized as an expense yet.
Because the costs are amortized over the licensing period, there is a lag before the expenses are recognized on the income statement. NFLX has built a large deferred expense balance that will be hitting in the quarters ahead.
It is sort of the opposite of the situation with AAPL when the iPhone came out. AAPL amortized the revenue over the contract period for the phones, so, as iPhone sales ramped up, the company built a large balance of deferred revenue.
Reply
EXK, are you serious?? That smells like something Jake would do.
http://www.jakegint.blogspot.com/
Reply
Your market commentary is excellent. Where you a good English student in your youth?
Reply
in his youth ??? how old do you think he is ???
Reply