Buy Benny and The Dips


The market may go up or down next week, the sun will rise and fall, and suits at Jos. A. Banks will still be 70% off.  The NSA and the IRS will still be out to get us, water will still be wet, and the world will still spin on its axis. We’ll find out early next week whether or not we test (or break?) the 1598 low made on June 6. The market is back to “up a hundred, down a hundred” until it figures itself out. Markets act this way when there is uncertainty.

End of the day its all about your time frame. Do we rip next week or take out the recent lows lows? Do you stay long (if you are) or sell everything? I say trade it and don’t be afraid to change your mind.

Harold Hamm and his wifey Sue Ann are splitting up.  No pre-nup, so she grabs a cool 3 billion.  He was a fracking magnate in the Dakotas.  Rupert Murdoch and Wendy called it quits this week too. I’m blessed in the knowledge that I don’t give a rip,  Rupert will still tweet. It would be fun to live in that alternate wealth universe for just a day though. My lawyer would say, “Joe, you have 25 billion, can you give her 3B to go away?” I’d whip out the Monte Blanc before he finished the sentence. Seeya.. Kissinger said power and money is a formidable aphrodisiac.

HUGE week next week for us market players as Bernanke takes center stage. OMG, he may curtail QE…… Really??? ……Really??  What a surprise, this has only been telegraphed for nine months now.

Ben will be as dovish as he can next week, and he will make best efforts to massage and stroke the entitled, enabled and spoiled market that he created (of course my own opinion). Unless unemployment hit 6.5% while I was napping, then he will still play ball. The coming rally could be epic. This shit happens all the time as the market digests and consolidates. You’ve seen the movie, play it right. We may retest those lows first,  so stay ready.  Go buy bonds and lose money if you disagree. Yeah, that trade’s a winner.

Abenomics turned into Abegeddon the last couple of weeks, as our boy in Japan doesn’t haven’t any clue about how to ease properly. Crackhead.  Guy needs a martini and a steak with Ben to learn the ropes. He pressed to0 fast and too hard. What a rookie.  That market will come back strong.  Let it breath a bit.  A baby hasn’t cried since Taisho period in Japan. The population is on adult diapers and they have no choice but to crank it. No choice.

Shit still floats in a bull market as $GRPN caught an upgrade last week. Coal looks like its going to zero. and $AAPL looks like complete garbage. It’s a mixed market and the leaders are pulling back. That doesn’t mean they aren’t leaders anymore, it just means they are correcting.  Biotech $IBB stays on fire. Utilities $XLU are trading like they lost power, but held the 200 day moving average last week for whatever that’s worth. The financials $XLF have been going sideways for a month and needed  a rest anyway.

Once the market really embraces the curtailment of QE as a good thing, it will be onward and upward. We are going through this process now. We’ve been on a heroin drip for five years and withdrawal takes a while.

You should come by for a free trial here. Have a great weekend.


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