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Rushing Back to the Gambling Tables
Once again, the lure of easy money lured the Riverboaters back into the casino for more action. Old timers like Art Cashin, who has been warning of a correction, are woefully inept at gauging the gambling fever which now grips so many fast buck hustlers these days.
First news of the day was the horrid numbers reported by SHLD and seeing the stock gap down 10% on the open. Results were blamed on weak "top line" numbers at Sears and Kmart. Unfortunately, the result of those stores have no influence on SHLD's performance whatsoever. It all has to do with whether or not "Fast Eddie" Lambert hit any home runs during the quarter gambling on mortgage and credit derivatives, trading outsized positions in single stocks, or shucking and jiving in some other undisclosed exotic trading strategy.
SHLD is merely a Gambling Parlor masquerading as a retail chain. Ever been to a Kmart lately? So much crap thrown on the floor, stacked up on tables, messy shelves, etc., the place is more akin to a swap meet in Baja California or a street bazaar in Istanbul. Its all a front for the gaming operations.
No different than various mafia types operating a massive sports wagering operation in the back room of a chain of Buca di Beppo restaurants.
Despite the horrific action in SHLD, PETM, etc., gamblers seized on the opportunity to jump on the stocks of the absolute worst quality today.
They could not wait to jump on derivative infested, toxic debt laden companies such as AIG and Citigroup:
And then there are the car rental companies, which appear to be the next bubble in the making:
Avis rocketing up another 15% today to a new high:
And as stock prices go higher and higher, mood improves and various consumer discretionary stocks keep getting massive bids.
Look no further than Frederick's of Hollywood:
Just a few more days for the SPY to clear past the 38.2% retracement point, and then the crowds will start going wild and buttons will start being unbuttoned....
And yes, ladies, the highly chiseled ANF Gigilos will start emerging from the closet....
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Awesome, just simply awesome.
Whoo hoo....first response
Sears stores neater than Kmart....but they are EMPTY
TV & Appliance sections often have 20 associates just standing around, but no customers
Hardware has no customers, just 15 or so associates looking like cigar store wooden indians
Some activity by Mexican day workers in the 70% off clothes sales racks....on Sundays only, as that's the only day they are allowed to take off
Went to a Best Buy to replace a fried hard drive for my son's HP this past weekend and marveled also at the hustle and bustle, which upon further examination was caused by clerks dressed in blue outnumbering customers walking around doing, well, things.
Best buy near me has around 20 GPS units on display. Tried to buy one. Only three in stock. Nearbuy stores? Those 3 plus one other.
Costco? Only one model, but the one I wanted, 000's in stock.
Can you guys fix this to avoid double posts when the mouse button bounces?
I'm not an optimist about the overall economic prospects, not at all, but I think the Best Buy crowd can be highly variable with location. I was in a local (Colorado Springs) Best Buy weekend before last and was amazed at the crowds. I asked a clerk and he said that their business had been growing by quite a bit lately, some of it due to back-to-school laptop purchases. However, I saw a lot of people in the TV section, too. Of course, this entire area is military industrial complex central, so taxpayer money keeps it going. And I have seen a number of storefronts closed in strip malls that have _never_ had empty stores before, even stores located in high auto traffic areas, so the recession is definitely having an effect here.
Agree. By me, shelves are bare. All the action's at Targé across the street.
And it looks like they are having a political rally for Craftsman in the basement ... where they pick the last old guy that wears his pride like a battered shield to run the register.
What is going on with GAZ?
Mafia guys gamble in the back of a Buppe de Beppo? I thought all the mob money was in biotech?
No, it's consumer discretionary. And I'm not kidding.
Has anybody noticed that most stocks don't even have quoted PE ratios anymore? Ok, so you're turning a loss, I understand! It is a thing of beauty to watch their stock prices rocket toward the heavens on a zero profit stream.
No profits, no dividends, no cash flow.....period. But rocketing stock prices.
We are setting up for a collapse of Biblical proportions! Get your popcorn......
Welcome to 1999.
No question we are in another Fed-induced stock market bubble. And make no mistake, even at S&P 1000, we are in a bubble.
"No profits, no dividends, no cash flow.....period. But rocketing stock prices."
lol. just like dot.com 1.0
If you can see through the lunacy and headfakes, looks like the smart money is going into energy & consumer non-cyc
ECA, PG, KFT, CV, K, etc
How many where added to mange commodity's?
How many pension funds ran to fixed.
How fast can they pump up comm before end 3rd quarter melt fest?
Am I the only one that thinks Oil is going to make like Nat. Gas and go down? Take out the highs from last summer and the current price is a high even by 2006 standards. Even if you give credence to the weakening dollar as a reason for Short Term higher prices in oil (long term is a given), surely the global demand destruction would drive prices down. Besides, anyone producing oil currently would likely realize this and keep production high to milk these premiums... adding to supply, and resulting in lower price. Furthermore, aside from long term inflation hedge by getting commodities, surely oil can't go much higher for the time being (1-2 years) -- if it does, costs for business and consumers will rise, thus de-stimulating the economy, and thus drive oil prices down through renewed demand destruction. I say Oil is going <$55. Who's with me??
I would touch base with Goldman Sachs and Morgan Stanley first, no reason to fly blind.
I'm with you Daedal. Maybe more like 60 for an average with very minor dips to 58 59 to scare the longs out of their positions. Oil, like stocks, will remain artificially high despite demand destruction for the same reasons Helicopter Ben reinflated everyone's bubble.
Liquid Brick
Who need industry and jobs anymore to make money...this is 2009, we have the FED and the stock market for that! Working for money is so 2008.
Wow, Citi has averaged over a blllion (that's a "B" no typo mistake) shares for nearly a month, the ramp is simply incredible, we have long crossed the chasm, and still no one is worried.
New Stragedy?
Papa squid and baby squddies pumping up equities to dizzy, spooky, unsustainable heights so they can greenmail Fed into pumping some more sugar this fall!
Lotsa action in Jackson.
I really missed reading Wyndy's stuff. If you're wondering why he spends as much time as he does sending this thoughts into the either, I think this explains it:
..Robert Louis Stevenson and I (Mark Twain), sitting in Union Square and Washington Square a great many years ago, tried to find a name for, the submerged fame, that fame that permeates the great crowd of people you never see and never mingle with; people with whom you have no speech, but who read your books and become admirers of your work and have an affection for you. You may never find it out in the world, but there it is, and it is the faithfulness of the friendship, of the homage of those men, never criticizing, that began when they were children. They have nothing but compliments they never see the criticisms, they never hear any disparagement of you, and you will remain in the home of their hearts' affection forever and ever. And Louis Stevenson and I decided that of all fame, that was the best, the very best.
- speech, 11 January 1908
I'm glad I've found Wyndy again ... this pretty much describes how I feel about him:
..Robert Louis Stevenson and I (Mark Twain), sitting in Union Square and Washington Square a great many years ago, tried to find a name for, the submerged fame, that fame that permeates the great crowd of people you never see and never mingle with; people with whom you have no speech, but who read your books and become admirers of your work and have an affection for you. You may never find it out in the world, but there it is, and it is the faithfulness of the friendship, of the homage of those men, never criticizing, that began when they were children. They have nothing but compliments they never see the criticisms, they never hear any disparagement of you, and you will remain in the home of their hearts' affection forever and ever. And Louis Stevenson and I decided that of all fame, that was the best, the very best.
- speech, 11 January 1908
Windy, another great post.
what a twisted sense of humor..
the worst of the worst
in a worthless market .
insult added to injury
Asia markets taking another pounding up the backside again...
These swings are gettin' ca-razy!
Cashin looks like a crocodile comfortable when crawling in this pond.
UBS is a very active buyer of sp futures.
Trading these index's lately is the easiest thing to do. Whether you are trading 1 min or 1 day, you hardly ever get an instance of 3 down candles in a row.
Up candles are by far much larger and run more consecutively.
seems FSLR has an inventory problem