BIOTECHS as a whole, broke out yesterday on two buyouts…BIVV, JUNO.
The market closed on a high…again.
OILS may take another leg up here as patterns remain bullish.
Bad reactions to earnings in names like BK and GS are just turning back up.
Good reactions are gapping up. The latest in NFLX this morning.
Told you! There was no stinking shutdown. Whether you are an R or a D, one party still just doesn’t get it. It is WE THE PEOPLE.
JP Morgan also announces $20 billion, 5 year investment plan…raising wages…expanding philanthropy…opening more branches…saying the tax bill helped move this forward. Hear that Schumer, Warren, Sanders?
What? You didn’t believe me? There’s no stinking shutdown! It’s all a game. As soon as one side saw poll numbers going the wrong way, that side blinked. You think they really give a crap? It’s a game of three card monte. It is to make you take your eyes off the real problem and that is today, another $2 billion has been added to our debt. Tomorrow, another $2 billion…and so on and so on and so on. Chuck Schumer? He’s been a senator since 1999 and a politician since 1993. Dick Durbin? He’s been a politician since coming out of the womb…a senator since 97 and a congressman since 1983. Mitch McConnell? He’s been a senator since 1985. All have been a party to $21 trillion of debt and counting. Yet, do you hear any one of them dare mention our debt? Do they dare mention the absolutely sickening, out of control government spending and size of government? Nope!
But don’t worry! As Kevin Bacon said in Animal House “all is well!” The market is up!
Amazingly, kids are actually doing this!
JUNO bought. BIVV bought…so 2 BIOTECHS up big.
Otherwise, futures flattish…but just want to alert you sentiment is at a maximum maximum of bullishness. Again, sentiment is a secondary indicator…just keep in file manager.
NFLX reports after the close.
Before tomorrow open: BABA, GLW, FITB. JNJ. KMB, PII, PG, STT, TRV, VZ, WAT.
And the government shutdown continues.
-THREE CARD MONTE-
-While various moves have been devised for Monte, there is one basic move which is overwhelmingly used with virtually all Monte games. It has to do with the way the cards are held and tossed to the table. The dealer will pick up one of the cards with one hand, and two with the other. This is the key: although it appears that the dealer is tossing the lower most card to the table, in actuality they can toss either the top or the bottom card at will. Thus, having done so, and while mixing up the cards, the mark will be following the wrong card from the beginning. The move, done properly, is undetectable. Even the shills pretending to play are often unaware of where the money card actually is without the dealer employing signals of various kinds to let them know where it is.-
-Inevitably, once in a while the mark will manage to find the right location of the card by pure chance. This presents no problem at all for the mob; if the mark picks the right card, one of the shills will simply post a higher bid, which the dealer immediately accepts, announcing that they will accept only the highest bid. In other words, the mark puts down money on the right card, at which point a shill will immediately place a double bet on top of the card, thereby winning the “right” to play that round. Of course, if the mark picks the wrong card, the dealer takes the bid and the money. The dealer will never accept a winning bid from a mark.-
-The psychology of the con is to increase the mark’s confidence until they believe they have a special ability to cheat the dealer and win easy money. Everything the Monte mob does is geared towards creating that mindset in the mark. To increase the mark’s motivation to bet, they will also employ standard strategies such as having the dealer be slightly abrasive or rude, so there is even more reason to want to take their money.-
-So what does three card monte have to do with what we are now seeing and experiencing out of Washington DC? While the dealer and his friends pretend that they are pissed at each other…while they both call each other names…while they both tell us they are here for us…-
-Today, over $2 billion was added to OUR debt. Tomorrow, over $2 billion will be added to OUR debt. The next day, over $2 billion will be added to OUR debt. In fact, every day this year, over $2 billion will be added to OUR debt. And next year? Next year looks to be almost $3 billion added to OUR debt each day.-
-Each year, THEIR spending is going to go up. Each year, THEY are going to tell us they have a handle on things. Each year, THEY are going to tell us they are working for us. But each year is going to get worse and worse.-
-You have noticed their lies. You have noticed their hypocrisy. You have noticed their gamesmanship. You have noticed their politicization. At least we hope you have noticed.-
-Ceiling: upper limit, maximum, limitation.-
-Debt ceiling: an upper limit set on the amount of money that government may borrow.-
-Of course, the debt ceiling, OUR debt ceiling has now been raised 74 times. I thought a ceiling meant something could not go higher. Ceiling. I know ceilings. Ceilings are a friend of mine. There aint no ceilings.-
-These wonderful human beings, these caring human beings, these elected human beings, some in office for a few decades, have now spent almost $21 trillion more than they have taken in with the lion share coming from the past two presidents with the championship belt around the waist of Barack Obama’s $9 trillion in 8 years. This is on top of the trillions we send them every year.-
-So the three card monte continues to be played. The terrible fact is that we are the marks who continue to follow the wrong card. The difference is the crime is detectable but no one does anything about it. And if anyone tries, their voice is drowned out. We are headed to $30 trillion and higher. But don’t worry. The market is up!-
-Shutdowns? There are no stinking shutdowns! I cannot even bear watching or listening to any of them, D, R or S. That’s you Bernie. $21 trillion and counting. When the day of reckoning occurs, they will all be gone, either lobbying or hanging in their mansions.-
The historic market continues Historic in that there has not even been a pullback of consequence. The longer this lasts, the bigger the correction will be. Just study history.
But…it seems the market is actually strengthening here. Pay no attention to the Dow here as it is the most extended. You will notice that the Russell may start to lead. After all, look at Boeing (BA) up 17% this month. You think that is too much?
While the DOW finished up 50 on Friday, the broad market was up the equivalent of over 200. Keep that in mind. We will let you know if anything changes.
Along with the small caps possibly taking the lead, starting to see CONSUMER STAPLES show up. (XLP) That’s the food, beverage, household products. Earnings growth not there but who cares?
On top of that:
RETAIL remains strong.
HOUSING may take another leg up as a few names sit tight.
FINANCIALS resting but nothing wrong. Names like MS still going.
The SOX broke out this week. Look for names doing the same.
Watching BIOTECH in here. A few names sitting in bases.
And of course, a ton of earnings reported in next few weeks.
Yesterday’s bear market wasn’t so bad. Mostly BA finally having a down day even though the A/D was putrid.
AMZN up nicely this morning as rumor they will raise PRIME price by 20%.
IBM gapping down even though they finally had sales go north for first time in years.
S&P futures flat but AMZN has QQQ lifting a bit.
Gargantuan earnings week coming up. Here are some from just the first 3 days. Please check for changes but as of now:
MONDAY- HAL, NFLX
TUESDAY- BABA, CNI, COF, CREE, FITB, GLW, JNJ,KMB, LMT, PHG, PII, PG, STT, STLD, TRV, UAL, VZ
WEDNESDAY- CMCSA, DFS, EBAY, FFIV, FCX, F, GE, HES, HBAN, ITW, LRCX, LVS, NSC, NOW, NVS, ROK, SYK, STX, TER, TXN, URI, VRTX, WDC, XLNX