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DrStool

The Amazing Miracle Market

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Got an automated call from Citibank this morning. They dropped the credit limit on my card by $18k. Just two weeks ago I had gotten a credit limit raise (that I didn't ask for).

 

Don't know if they played with the interest rate, but I suspect I'll have to ask for it to be lowered to what it was before this morning.

 

If credit is contracting, then the eCONomy will not be expanding.

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Check out the NAV moves in these freakin muni's....Just a sample (EOT),and still trading at a big discount to NAV..All have had NAV launches like this,Only a few still trade at a discount now.

 

Similar to the moves muni's had in march and april.Lots of money being put to work right now.....

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I don't think anyone knows whats gonna happen here but every tool the media used in the past two bubbles they are using in this rally. Today's bear market lasted two hours. The other day...an hour if that. Maybe that means we are getting closer to some sort of pullback.

 

The most noticeable similarity to the past two moral hazard moonshots is the lack of pullbacks which is forcing people earning zero % ( Grennies housing bubble) back into the market at sheet prices. In this yet to be "named bubble" the government is the new "host" like some monster in the movie in Alien and the new trimmed down Wall Street mafia Families have finally enticed people to come back into the breeding ground for gamblers where no one knows or cares what anything is worth...just that its moving up....or down in very rare cases.

 

The word 'investor' should be stripped from the wall street vocabulary....the Fed and fraudsters have destroyed the markets and the essence of "fair" price discovery...this is the pool we play in knowing it can go far beyond we imagined and get shanked because Art Crashin flicked a booger at Bob Lesko at the most unexpected time wiping out billions of dollars of market cap in six hours.. I have come to a conclusion that we have to have bubbles or we will crash. Mal investment, inefficient use of capital, thuggery, front running, the Du Page county Fair cow auction price target game, any news is good news, "discounting" bullsheet, "you gotta be in", I pledge allegiance to the Fed Flag Pole patterns, stepping over a lowered bar, ....we should be used to this.

 

No one's gonna sit around waiting for a U bottom. We trade in dog years. The trick is to know when to have no fear of buying crap and when it's ending. As for why I look at the markets as only a collection of numbers...the 4 horsemen that saved today are essentially bankrupt. It is what it is...a busted system making the same mistakes over and over that's going up without pullbacks....for now. I think this stage of the ramp is late in the game but I'm sure the pig men want to go out with a blaze of high volume glory. Even then, I'm not sure it's worth shorting for longer then a day given the fact the government is gonna be throwing sheet at the wall and coming up with new gimmicks the rest of the year.

 

Just keep an open mind. This is gonna end in tears again but remember how long the last two bubbles lasted.

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Hey TJ,are corporate bonds also going nuts?I have not followed them at all lately.

 

 

I would guess they are,everyone chasing anything with Yield.

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I have come to a conclusion that we have to have bubbles or we will crash.

 

I totally agree. I'm gonna change my business card from "Global Asset Allocator" to "Super Duper Bubble Blooper", or something along those lines.

 

The irony is that we will get the bubbles, and we will get the crashes, all the time. Prick one, and simultaneously create another. It's just a an intrinsic part of our relatively incipient global monetary system.

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I totally agree. I'm gonna change my business card from "Global Asset Allocator" to "Super Duper Bubble Blooper", or something along those lines.

 

The irony is that we will get the bubbles, and we will get the crashes, all the time. Prick one, and simultaneously create another. It's just a an intrinsic part of our relatively incipient global monetary system.

 

That will work...also society has been brainwashed to not fear bubbles. We are at the point where many psychologically feel they are also "forced" to play as the Fed has sucked the life out of savers by pinning short term rates at zero indefinately. Two back to back bubbles within 3 years ? And now the greatest economic disaster since the great depression is over in 5 months and a 3000 point non stop Tony Dow Jokes rally ? No U for you. V and crash.

 

Wouldn't surprise me on any given day from here on out we are lock limit down in the morning or go up 1000 points in a week which is why I'm playing with 10 % max and going home flat every friday. No preference to either side but recently shorting makes me do this....

 

 

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That will work...also society has been brainwashed to not fear bubbles. We are at the point where many psychologically feel they are also "forced" to play as the Fed has sucked the life out of savers by pinning short term rates at zero indefinately. Two back to back bubbles within 3 years ? And now the greatest economic disaster since the great depression is over in 5 months and a 3000 point non stop Tony Dow Jokes rally ? No U for you. V and crash.

 

Wouldn't surprise me on any given day from here on out we are lock limit down in the morning or go up 1000 points in a week which is why I'm playing with 10 % max and going home flat every friday. No preference to either side but recently shorting makes me do this....

 

 

 

This was my investment comittee, in a nutshell:

 

"Risk/reward deteriorating, bla bla bla, low cash levels bla bla bla, negative divergences bla bla bla, multiple expansion not in sync with top line growth potential bla bla bla, Baltic Dry Index falling, EM and tech underperforming, bla bla bla........ but on the other hand, we may be ad portas another risk asset bubble, and we don't want to be on the wrong side of that".

 

Inconclusive conclusion.

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Investors still trading Fannie, Freddie, AIG shares, even though prices are likely to hit zero

 

WISHINGTON D.C. (AP) -- Investors are still trading common shares of Fannie Mae, Freddie Mac and American International Group Inc. by the billions, even though analcysts say their prices are almost certain to go to zero. :ninja:

 

The Securities and Exchange Commission and other regulators lack authority to end trading of stocks in such "zombie" companies that technically are alive -- until the government takes them off life support.

 

Analcysts say the wind-down strategies for the companies are almost sure to wipe out any common equity, making their shares worthless.

 

"People have done well by trading them (in the short term), but when it gets to the end of the road, these stocks are going to be worth zero," said Bose George, an analcyst with the investment bank Keefe, Bruyette & Woods Inc.

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