Yesterday morning the markets were hot. Red hot. The major indices have been in an uninterrupted uptrend since June 4 but the previous four days have been a ramp-fest, with Apple running almost 40 points in those four days and setting the tone leading to the test of the yearly highs. Never mind that the biggest IPO in history, Facebook, lost $50 billion in a quarter; Apple made those gains in a few days.
Speaking of Facebook, many are blaming Cramer, Thiel, Morgan Stanley. Remember who set the private valuation for the company of $100 billion long before the IPO. None other than the Vampire Squid themselves, Goldman Sachs. And it appears they are getting away with it.
Back to yesterday. Markets appeared to make a perfect double top with the April high. Volume at thirteen year lows. No earnings reports or government interference to deal with. And the Europeans are still on summer break.
All hat, no cattle.
Most market participants will remind you that following price is what is important. But as I’ve said many times in the past, the market lies like a rug. Sometimes for weeks or months at a time. This has been an Apple/Google market with the mega-caps holding everything together. Some will also tell you that the market’s gains have nothing to do with the hope of more free money. We shall soon see.
In the meantime, circling back to the defensives makes all kind of sense to me.
10 Responses to Hot Griddle/No Bacon
so $cf $agu $cat $fcx $clf $apa $glw all of the above aren’t worth 20% +? the real answer is that nobody knows =] but honestly as i see this market there are a lot of dream multiples in some stocks and other seem underated because they are sensitive to the economy but that is bs because they made money each year including 2008 so who’s right? eventually only price pays =]
Fly’s not a happy camper today in DMND. …plunging
Hey fly, how my ass taste?
dude, i swear i’m roflmfao on you. talk all the fucking stupid shit you want. there isnt anyone here who has NOT played dmnd at least 8-9 times already this year. i just finished my 5th time back out. sooo fucking what,who really gives a fuck. beginning to think you only play one stupid issue at a time. go full retard in then.and then come back after the fall of the nut, to tell us how much you made,or lost.dis:been playing dmnd since 07 @ stockpickr when it was owned by james A.
GENE ROSENSTEIN: Please don’t post here again unless you have something constructive to add.
sorry for the disrespect scott.good post.thinking lumber again what say you? thanks
A double top is a breakout waiting to happen. – J Macke
Wrong. But a triple top is another story…
Scott, do you like MO here on this pullback?
I would love to buy it closer to the primary breakout at 32.50…