Wednesday, March 25, 2009

Why isn't GS under investigation?

Before I get into today and tomorrow, I just have to get it off my chest. Now maybe it's just me against the world, but why hasn't anyone brought up and made a big deal that, in my opinion, GS basically stole $18 BILLION from the US Govt and the US taxpayer. How in the world can they just take $18 BILLION for debt that was probably worth no more than 20% to 30% of that? Even if its 50 or 60% that's still a helluva lot of money. They all went nuts over AIG $170 MIL and wanted to lynch them, what about GS? We have serious issues in many areas, but this is a large part of the problem in my opinion. There is so much smoke and mirrors that we can't possibly dig ourselves out. It is amazing to me that GS is trading at $112 and every other financial stock is gasping for air. And, I am NOT short GS mind you. If anything I'd be long it here, as much as I think they are filthbags and slimebuckets. It must be true, they must be the smartest guys out there, or at least the most corrupt. They managed to help put BSC, LEH out of business and are basically the last man standing. MS don't look so hot longer term. Or, perhaps its coincidence that this has happened. One thing I'm not is a conspiracy theorist, but I find it hard to believe that there wasn't some coersion going on with GS right in the middle of it. But, hey, maybe it is coincidence that the day GS was about to go under like all the rest the FED came out and saved them. Perhaps...

It's funny, I listen to all these pundits and they all say the same nonsense. Today they are saying "the market has changed, its showing strength, its resilent!" Or, "today's action was very bullish".

What rubbish. Yeah, its very bullish that on the slightest notion that something is wrong we sell off nearly 300 points intraday. Yeah, thats STRONG baby!!! Wowsa! Oh, but we rallied end of day and that shows we are really strong!

No, you knuckleheads, it doesn't show anything, what it shows is that we have an upward bias into two very important TRENDS, 1 being end of the month window dressing and the 2nd being mark to market decision next week.

Now, I could be wrong, but I am definately trading that news, I think we sell off HARD, and I mean REALLY HARD unless there is something unforseen news wise. Futures are up pretty big as I write this so it appears we'll get some more early strength. I would think we may get the same setup as today, with a fade of an early rally followed by buyers stepping in. I thnk we almost have to see the other side of 8000 on the DOW now and they can easily drive the financials even higher. I sure hope so cause if I'm right about this setup of selling the news, we are gonna get one helluva short to rack up on. And, if I'm wrong we'll stop out with a small loss. It truly is a nice setup as long as we hold up in the market and rally into next week. Going to something like 8300 would be a really nice entry for shorting on the news, that would be sweet. Get WFC to $20s and BAC to $10s, I think we'll get some crazy good shorts on.

We shall see. I'm laying low but that will be something I am planning on playing. I wish I was playing heavy here from the long side, we are definately a buy the dip mode right now and its fairly safe, I think, to play that way here. I wouldn't chase a 100 pt gap up tomorrow, too many people are bullish again now. This is a suckers rally into mark to market I believe. We shall see, babies, we shall see.

Thanks for all the support, I'm getting better slowly, but not so surely. Pain is a great motivator and I'm motivated to take it easy. Enjoy the bullish ride, next selloff is gonna be a doosey. I've said it 1000 times here, you have to respect the tape, don't fight it.

You see our CLF for those that had it last week? Dang, we were a day late and a dollar short! I knew it would take off, and boy has it. If we rally harder look for $25 on it potentially. Some nice call buying on it today, so we'll see, its lagged the move and could have some more upside. I'd wait for 10 am rule or a pullback to entry, though.

Enjoy and RULE!

And, get my book! and punch in RULE YOUR FREAKIN' RETIREMENT, by Michael Parness and order it NOW!



Mike said...

Hi Waxie:

I have been a member of Trendfund since 2003. You and the Trendfund's team are one of the best out there.

I wish you the best and recover 1000%, if not 10000%, from your accident soon, and nail the market again!!!

See you soon in the chatroom.

analyzer said...

Why isn't GS under investigation? Simple. Too many friends in high places. Does anyone really think that these guys take on low paying positions in the government out of a sense of service to their country? Even Buffet, with his advisory role for Obama, is part of the web with his "special" stake in Goldman. And don't forget about all those politicians they have bought and/or mesmerized with their their dollars and so-called expertise, an expertise, in my opinion, born out of market manipulation and a deeply ingrained old boy network. Let's face it, Goldman doesn't stand a chance of being investigated. It is hard for me to think of anyone in a position to investigate them who wouldn't fear for their professional futures should they try.

Erik said...


Do you think if we rally into the
M2M ruling, we sell off immediatly on that day?

SilverSurfer said...

I agree. GS at $100+ and quietly being taken care of throughout this entire mess. Didn't the GS guys get bonuses last year? Thain and the Merrill folks got skewered. Same for AIG.

The press is under complete control so I wouldn't expect anything from them on this but a light needs to shine on GS situation.

How can a $100+ share price be supported by future earnings? Where is this money going to come from? Their market cap is approximately $50B, half that of Apple Computer, Coca Cola, GE, JPM, and slightly less than McDonalds.

I know you wouldn't short it but for how long can they keep the smoke and mirrors going here?

momomiester said...

What else is new. They are robbing the country in front of our eyes!
Notice how everything seems to be scripted. The so called outrage on AIG yet the total white wash of the Goldman news.
I am still long from my bottom call and still holding till we some technical break down. I am not listening to anyone or taking a counter position till I see a real turn being the game seems rigged. Good luck to you!

Vernon said...

After reading your blog one quote and one comment come to mind:

""Since time and memorial sh@t flows downstream and money flows up""

Also, I think you're right: we watch for the short side setups and then we can get the Tom Petty music ready "Baby, I'm free.... Free Falling."

Get well soon.