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Ignore the Smell of Blood at Your Own Peril

RickAckerman's picture





 

What kind of batter crowds the plate after a pitcher has aimed a fastball at his head? “Batters” have been doing it routinely on Wall Street lately — most recently yesterday, when they held the broad averages buoyant while Google shares were getting pasted for 80 points. During this single-stock onslaught, the Dow Industrials were never down more than 50 points and closed off only slightly with GOOG still $53 in the hole. This wasn’t the first time bulls have leaned into the plate while “dusters” whizzed past their ears. A day earlier, they pushed the blue chip average to a small gain while IBM was getting savaged on earnings that only somewhat exceeded analysts’ expectations. Big Blue got schmeissed again yesterday along with Google, but the body blows that sent two corporate giants to the mat evidently weren’t enough to unsettle investors.

 

Invincible Buyers?

If bulls have been acting lately like they’re invincible, perhaps it’s because they appear to have shrugged off Apple’s nasty plunge in the last month. At its recent lows near $624, the stock had shed 11% of its value – a very big hit for portfolio managers, since the company is the world’s largest by capitalization. But so what? That seems to be the attitude on The Street, where the lotus-sniffing stewards of Other People’s Money have been curiously calm through it all. With three absolutely crucial bellwethers falling from the sky, the Dow currently sits a mere hundred points from new recovery highs.

 

 

 

It’s tempting to think DaBoyz are trying to fool widows and pensioners into believing things are hunky-dory while they distribute shares to the unwary by the trainload. As we know, however, individual investors deserted the stock market years ago, leaving only sharks to feed on chum limitlessly supplied by the Federal Reserve. Now, with the Dow Average acting as calm as a serial killer strapped to a polygraph, it beggars belief to think the sharks have not yet caught a whiff of blood from the likes of AAPL, IBM and GOOG. When the contagion of these bellwether stocks spreads to the broad averages, which could happen any day, don’t think you’ll have time to plot your escape. We’ve now got both feet out the fire-escape window, no longer persuaded by our own, purely technical and still-valid rally target at Dow 14969 that there’s a reason to stick around.

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Fri, 10/19/2012 - 23:26 | Link to Comment rustymason
rustymason's picture

Individual investors may have exited, but have their 401(k)'s been liquidated?

Fri, 10/19/2012 - 21:16 | Link to Comment Earl of Chiswick
Earl of Chiswick's picture

Thanks for the post Ack

don't really like the subcript sites trolling for losers but your post makes a great deal of sense, I can only imagine the hits (subscripts) your site must harvest given that Zero Hedge is rapidly approaching the top 1000 of all internet sites.  

Fri, 10/19/2012 - 23:28 | Link to Comment rickack
rickack's picture

Swell buncha guys, is why.  Harvest hits?  I'm only in it for the fun.

Fri, 10/19/2012 - 20:18 | Link to Comment Debeachesand Je...
Debeachesand Jerseyshores's picture

Gold and Silver were down again today. They will form a bottom by Election Day,just keep some extra cash ready to buy on the dips.

Fri, 10/19/2012 - 20:08 | Link to Comment disabledvet
disabledvet's picture

oh, and Don Baylor would still hug that plate. http://en.wikipedia.org/wiki/Don_Baylor 267 time he was hit by a pitch. holds the single season record for the Red Sox apparently. And "hit a pitch the hardest i ever saw" according to Home Plate ump Ken Kaiser. "glanced off the third baseman's glove and wound up over the fence." that's one HELL of a line drive!

Fri, 10/19/2012 - 19:59 | Link to Comment disabledvet
disabledvet's picture

http://uk.finance.yahoo.com/echarts?s=005930.KS#symbol=005930.ks;range=1... Uncle Samsung doesn't seem to have gotten hammered as bad. That says "buy Apple" to me. I've got a 4s, which i love. that things a total rock star...will look at a Samsung "just 'cause." I think the Softbank/Sprint merger is a HUGE deal. we'll see how it goes...but i will seriously look at jumping ship per the above comment. i have been told Verizon has kept pace however so we'll see. obviously if Apple catches a cold then its denge fever for the everyone but Samsung http://seekingalpha.com/symbol/nok?source=search_general&s=nok interesting that the stock turned up on the I-phone 5 launch tho. guess we'll all have to wait for the 5s then...

Fri, 10/19/2012 - 19:45 | Link to Comment Vegetius
Vegetius's picture

Smell of blood indeed, Frau Merkel has plunged the knife into to Hobos live on TV. Forget the above charts the real news is Germany will not pay -

Answering a reporter’s question about the possibility that any ESM rescue of Spain’s banks would damage her re-election campaign next year, she ruled out the fund taking on retrospective liabilities.

“I hadn’t even thought of the elections before hearing such ideas here. The capital needs of Spanish banks have just been evaluated and a programme for their recapitalisation has been agreed,” she said.

“Spain only needs to ask for the tranches of funds. There will be no retroactive direct recapitalisation, either.”

So what does this mean well simply put Ireland, Spain, Portugal and dare we say the French and Belgians are screwed this was the big get out of jail free card and what all these guys have been pushing for. Look at what the Germans are saying Hell will freeze over before the ESM will work with the preconditions the Germans have added.

Quote time -

 “Them that's got the gold makes the rules” - Scrooge

Fri, 10/19/2012 - 20:58 | Link to Comment Go Tribe
Go Tribe's picture

I'd like to see the Germans in charge. I think they'll be a little gentler this time, but still impatient with bullshit.

Fri, 10/19/2012 - 18:43 | Link to Comment Translator
Translator's picture

I'm cashed out of the market except for ten percent in some obscure stocks.

 

Sittin on a pile of cash right now salivating over the drop in Ag

 

 

How low will Ag go? I think the Euro goes full in the toilet slightly before or just after the election and a good time to chunk up will be around USD EU parity.

 

 

But WTF do I know......

Fri, 10/19/2012 - 19:07 | Link to Comment cynicalskeptic
cynicalskeptic's picture

Odd how SLW was UP today - and mining stocks were doing far better than the market in general or even the metals themselves....  short term paper raiding all week - when's the paper/physical disconnect coming?

Fri, 10/19/2012 - 18:39 | Link to Comment PLove
PLove's picture

Jennifer Lake blog is filled with Big Pharma bullshit.

Total mumbogumbo.   

 

Fri, 10/19/2012 - 23:24 | Link to Comment rustymason
rustymason's picture

Say, that reminds me, I haven't heard much from the Mogambo lately.

Fri, 10/19/2012 - 18:33 | Link to Comment virgilcaine
virgilcaine's picture

Wasn't he bullish a few days ago?  Dow 16k..etc.

Fri, 10/19/2012 - 18:35 | Link to Comment kito
kito's picture

hes still bullish, but only if his bearish call doesnt materialize................he wants people to pay for his picks???????is he kidding us???????????????????????????

Fri, 10/19/2012 - 18:27 | Link to Comment RafterManFMJ
RafterManFMJ's picture

Going to return my Iphone5, as well as the wife's. It's actually slower than the Iphone4;  Oh and by the way, AT/T, we know when it shows '4G' it really isn't 4G.  Seriously, the 5 hangs on internet browsing. I'm disgusted. Two generations of phones later, and it performs worse? Piss off, Apple.

Fri, 10/19/2012 - 21:47 | Link to Comment CPL
CPL's picture

It's the value add of all the new user tracking features.

 

It certainly wasn't the content of the web that got more complex, just the technology for your phone to track you like a herd.

Fri, 10/19/2012 - 18:33 | Link to Comment kito
kito's picture

apple will be dead within 5 years.....they are built around one product........lightening rarely strikes twice.....the next breakthrough product wont be from apple.....................they keep their os to themselves.......they keep out other platforms.................no company can maintain success with that proprietary mindset in the technology world..................

Fri, 10/19/2012 - 19:10 | Link to Comment LynRobison
LynRobison's picture

In 5 years, lots of companies will be dead. In 10 years our civil society and lots of sheople will be dead.

 

Fri, 10/19/2012 - 22:48 | Link to Comment BigDuke6
BigDuke6's picture

In Iran they'll be dead
You'll b fine

Fri, 10/19/2012 - 18:15 | Link to Comment Gringo Viejo
Gringo Viejo's picture

Insiders need to complete "disribution" and lock in their profits before destroying the 401Ks and pensions of the middle class. Almost there................

Fri, 10/19/2012 - 18:10 | Link to Comment kito
kito's picture

so ricks picks are no different than the weathermans?? clear skies..... nope sorry..... storm changed direction.... now its going to rain..............but our sunny forecast is still a valid possibility????

 

WTF is the point of this article rick???? what makes you different than the nearly blind big bank analysts who cant see past their noses?............................

Fri, 10/19/2012 - 23:23 | Link to Comment rickack
rickack's picture

My forecasts?  Ask around the neighborhood, Kito.

Fri, 10/19/2012 - 23:41 | Link to Comment Cheesy Bastard
Cheesy Bastard's picture

Dear Rick,
      I agree with your assessment.  However, when this occurs, the price of PM's will also collapse.  That will be the time to buy them.   There will only be a short window. 

Fri, 10/19/2012 - 18:01 | Link to Comment 3rdgrader
3rdgrader's picture

Hard to ignore it when it's your own fucking blood.

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