“Everyone has a strategy until they get hit” -Mike Tyson
Thank You. Thanks to the troglodytes that run our Congress. You did it again. FINREG was passed and Nancy Pelosi,who is third in line to be the leader of the free world got her way. I’m shaking my head so much that you could mix paint colors in my mouth. She looks lovely in her Chanel suits and her Gucci scarves, but has the true intellect of a glowworm. I hate regulation, but I realize something needed to be done to protect us from the likes of Goldman Sachs, just not thousands of pages of crap, and hundreds of new bureaucracies that will inevitably spawn. Glass-Steagall lasted 50 years (seamlessly) and was written on 17 pages.
“Intellectually superior” Barney Frank, proudly basks in the glory of victory, even though, if you do simple due diligence , will find that he was the major enabler for Fannie and Freddie. When he is not running a cat house in his Georgetown townhouse, he is sucking up to special interests and trying to raise my taxes. Chris Dodd is being kicked to the curb, and voted out of office, as he ponders his navel and his future while he calculates the money saved on his “special” deal with his buddy Anthony Mozilo at Countrywide. The SEC has charged Mozilo with fraud, just in case you haven’t been reading the funny papers.
The Right is just as bad and they make me puke.
The financials liked it. The XLF was down 4.2% yesterday, It’s worst showing in a long time. Was it all because of the passage of FINREG? Not at all. Bank of America failed miserably on earnings (down 9%), and Citigroup stunk up the joint (down 6%). Even JPM, run by our next Treasury secretary, Jamie (I am God) Dimon was down 4%.
Apple gave away a free chotchky as an apology for them not allowing you to make a phone call. The day I have a larger net worth than Steve Jobs, I will opine on his supposedly “rude” response to investors yesterday. If I just came off a trip to Hawaii, was worth billions and just survived pancreatic cancer, I would probably tell every nerd/investor to politely go f**k themselves. Apple and Jobs are deserving of multiple free passes.
GS ripped yesterday and then rolled over late in the day as it finally acquiesced to the peer pressure of the market. It managed to stay green, and still closed much higher than Thursday’s low.
On my video with subscribers on Sunday night, I discussed the bearish head and shoulders pattern that may have been developing, not only in sector ETF’s, but on the indices. These right shoulders are forming and are starting to gather steam. They are still reversible , but are not looking good. The next few weeks will be amazing for market players, as headlines dominate the market, and it’s not just about earnings. Bears will tell you it’s not just headlines and deeper issues prevail.
AAPL reports Tuesday and so does GS. I don’t think earnings at this point mean anything for GS, but it will for AAPL, and I look for a decent short squeeze next week or a complete rollover that could snap the early July lows. Intel has proven that “great” earnings don’t matter. Eggshell underpinnings folks, very weak. I never expected INTC to “save” the market, but maybe AAPL will… for a day or two. Vague? Yes. All the money is made in the middle anyway.
I have always said the market doesn’t have a shot without the financials, so watch XLF as if your life depends on it. If it rallies, so will the market. If it fails? Well..you know.
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Enjoy the links and have a ridiculously awesome weekend.
Where were these double short retail ETF’s last month?
Ferguson: A disaster is imminent, love these guys. They don’t know. They were bigger one hit wonders though than “The Knack”.
Financial reform in 2,300 pages.
Gasparino on Blankfein
A “think tank” says an Israeli attack on Iran would be long. Ya think?
Dodd-Frank-ignores cause of collapse.
Karl Rove: My biggest mistake in the White House
The week in ETF’s
What Penthouse would get if it bought Playboy.
Shutter Island was “off” in my opinion, although I liked the Hitchcock style,” Inception” gets good reviews.
The 10 most left biased journalists.