iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
19,617 Blog Posts

The Dow Jones Industrial Average is At All-Time Highs

I wanted to write that title for two reasons.

1. To remind myself, even though my positioning was wrong, there are plenty of stocks going higher. This is a healthy market for the vast majority of stocks out there.

2. To invite the more pessimistic aspects of the barbarian horde who cavort around here to moderate yourselves, as it is betting boring.

As you wait for the world to burn, companies are merging with one another (PF was acquired this morning) and there are plenty of deals in the works. The problem that most of us are having is seeing the forest through the trees. So many of us have lived in this world of high-tech, social media, biotech degeneracy, always interested in the Fast Money, that we’ve forgotten about the real economy. Companies like PG, ACE and EL are doing just fine. Valuations are reasonable and their businesses have never been better.

This whole IPO business is really making me sick. My friends at some of the large bracket firms are flipping out of these IPOs on day 1. I was surprised to hear this, as it’s usually customary for underwriters to encourage their brokers to hold for a minimum time frame. Back in the old days, they’d place a ‘penalty bid’ on any deal flipped for quick profit, basically snatching away commissions from the broker. It was his job to keep clients in. However, these days, the banks are actually encouraging 1 day flips, essentially getting liquid on the unsuspecting public.

There are many things I do not like about this market. The way high growth stocks collapsed, the behavior of bonds, the unbelievable earnings blow ups, and the extended nature of the current bull run all have me a bit on edge. But I must remember: markets do not crash from all-time highs.  Markets are not supposed to be feared at all-time highs. There is a great divergence taking place between profitable vs unprofitable companies. However, other than that, the Dow Jones Industrial Average is at new all-time highs and there is nothing bearish about that.

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15 comments

  1. position-trades

    Fly, you have this uncanny talent of finding big winners before most guys on wall street. find the next one, load up and make it all back.

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  2. sloop

    Is it not true that all tops always seem “healthy”

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    • sloop

      I like this little guy better. thanks Fly!

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    • The Next New Cat Thing
      The Next New Cat Thing

      Only an external event will kill this Bull.
      There is no way of knowing when that meteor will hit, could be tomorrow, 1 year or 5.
      Waiting for asteroids brings very low returns.

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  3. sloop

    Take a look at the chart of LOCK. look at it’s weekly chart too. I think it’s worth a shot with a tight stop around 12.30

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  4. blackalgo

    Moving into a slightly levered position for the first time this year. Twitter lagging a little but still doing well. Lock looks interesting Sloop. It does look ripe for a bounce. Blox as well.

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  5. blackalgo

    Is monday the new tuesday? Or do we get two days like this?!

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  6. blackalgo

    I think there *may* be some short covering happening…. NASDAQ +1.48%

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  7. bluestar

    All bear markets start from new all time highs. Its a paradox.

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