We are in the process of watching the buck burn to death. My friend Keith McCullough of Hedgeye coined this phrase a while back and has been spot on about its gyrations for over a year. Uncle Ben and Timmy continue to, and promise to, go 24/7 with the presses and the boys at the Fed are all too willing to play along. The ending to this will be epic, but the misanthropes that are charged with writing about it will never telegraph the true story properly, for the real story has yet to unfold. It will be our children’s own pundits that will write the story in hindsight. That is unfortunate, but it is true. Even Andrew Ross Sorkin doesn’t know the ending, his last coffee table book will be eclipsed by the monumental tablet that he will probably pen years from now. It will make subprime and derivative abuse look like choir practice. It will pale in comparison to the debt build and crack whore spending that we are experiencing now. I have always maintained that what is coming will make what has happened look like child’s play.
The market loves a dying dollar and the Euro is on fire. It is a perfect storm for the bulls and that is evidenced by the constant uptick in stocks. I wouldn’t let an Institutional Investor All Star analyst watch my kid on a rainy day, yet they are back to jumping all over each other with their upgrades on stocks. They think the gilded age has returned and all is well with the world. They hated MOS at $38 just 60 days ago, but love it now at $60, they had sells on FCX at $60 just 60 days ago , but now love it at $90. Do you get it yet? Hope so, because I wrote about this shit at the top of the market a couple of years ago. Does history repeat? Usually. Am I calling a top? No, idiots call bottoms and tops, some get lucky. See Doug Kass. Arrogance at its finest.
Green Mountain Coffee (GMCR) got crushed like a bean this week and some of the leaders like AAPL and AMZN gave some back. we’ll see next week if they are just digesting gains or if the investors at large want to take some off before the coming earnings reports. Yep, Alcoa reports soon and will kick things off.
We broke through 1150 on Thursday, tagged 1157 , but closed at 1141 after testing 1136. Yesterday we tagged 1150 , but closed underneath the number. Mr. Market is either tired or resting for a move higher. Next week will be fun.
My Premium Site had a record September and we are off to a scorching October. Feel free to e-mail me for performance results at [email protected]. My subscription rate will be increased on October 9th. All existing and new subscribers before October 9th will be grandfathered at current rates.
Have a great weekend and enjoy the links.
Job counselors are losing their jobs.
Day options..bring out the players.
Mainstream TV looks dead.
How much would you pay for 4 months?
Strategic defaults and the housing market.
Where are the prop traders?
CNN’s Sanchez fired
Humboldt’ts rise
China’s land grab.
ETF roundup.