Thursday, April 30, 2009


News flash, evil hedge funds wouldn't play ball with government! Wowsa, we are heading down a very dangerous path (yeah,I know, we already have). Is there such a thing as Liberal Conservatism? It's quite amazing, it reminds me of that Star Trek episode where the Star Fleet guy is sent down to observe and he gets involved and they end up moving toward an ultra conservative nation. (I won't mention the name because I can't compare most anything to that period of time). I understand the move toward socialism. I mean, whether you agree or not, that's what we voted for as a country. Obama didn't hide his leanings. However, this constant ripping of anything capitalistic is absurd, and will backfire. Hedge Funds aren't evil (well, most of them aren't). Most hedge funds are just trying to find good deals just like everyone else who invests. Just because the government wants to put Chrysler into bankruptcy (it's ironic because Chrysler should have been buried 30 years ago but the govt intervened to save them, bad history does indeed repeat itself) doesn't mean that INVESTORS should buckle and lose money. If that's the case then why does the government keep manipulating the market to drive it higher artificially? Is there justice in GS being $130 a share but no one says a word about them stealing $18 BILLION from taxpayers? Or JPM being $33 a share despite abusing their powers and taking advantage of the government knuckleheads who spearheaded these forced deals?

How come Jamie Diamond is allowed to make millions and millions or Lyold Blankstein, or a dozen other HEDGE FUNDS masquarading as public companies? Please, give me a break with the hypocresy already. What a joke this whole thing is. A total total joke. They play high and mighty and just use black mail tactics to force their will on whatever and whomever they want. I'm very disturbed about the policy shifts we have in this country, and I don't mean from a party standpoint. As far as I'm concerned they are both knuckleheads. They all are. They have no clue about what they are doing and every two seconds they say the whole system is on the verge of crumbling and yet the market powers higher and higher, its pretty funny when you think about it. I stated yesterday that the GAPS were rocking and today while we held up well initially we eventually went nicely red, a 150+ point reversal off the open. WE had a VERY nice day, caught PCLN and FAZ (sweet) and we sold our calls - DIS, PRU, ATVI, etc. for huge gains, so I'm very happy. I had a very nice day as well.

Friday if we gap UP its a total gimme as far as I am concerned, just fade it and collect at the window, its a done deal. I suspect we'll get more of a flat open which is much tougher to play. A gap down should be fadeable, though I'd be less confident for anything more than a gap fill or so. Market is vastly overbought, that doesn't mean we can't go up a lot more, we may, but we are anemic volume wise to the buy side and that indicates that momentum may be switching sides. May 4th is a big day and I think we'll get a very nice trade early next week into the stress tests. So, BE PATIENT here, no need to rush a thing. Just pick your spots and you can ROCK!

I'll talk about next week over the weekend. Oh, for those of you Beta Testing the TREND CRUSHER software, please respond to Michael HOnig, we need some feedback on the product that we are rolling out VERY soon! its -, Michael HOnig.

BTW, I don't have Swine Flu, just run down a bit apparently, so that's good. In the meantime, Friday we may chop around a lot, remember - DO NOT OVERTRADE!


Michael "Waxie" Parness


Mike said...

Hi Waxie:

I watched several videos on CNBC website. I just can't believe how ugly they are in commenting current market conditions.

One guy said the sp500 broke through 875 and should be going higher.

The second guy said the market is a good buy (or good-bye?) based on dollar averaging.

The third guy said the market is going higher. IF you missed the rally, and the market keeps going higher from now, then don't buy. BUT, if it dips, you should buy the dips.

Last, this guy said "something" on the "Fast Money" show. One of those guys in the Fast Money show questioned him, and said he sounds more like he is going to sell stocks. This guy did not answer the question and said the stock is going higher in 12 months anyway?????

Just wonder how many people will buy their talks. Videos posted on the CNBC website is almost one-sided (which is buy) comments, at least 95% of them.

Early this year, they said the economy is so bad that no one should be buying stocks. The market rallied seven weeks. Now, those same guys are saying the economy is better and will get even better that everyone should be buying stocks. Even CNBC posted "Sell in May and Go Away may not be good this time" on its website from 1:00pm pacific, and it is still on while I am writing this comment (its 11:30pm pacific). One of the longest headline posted I've ever seen on its website. Based on previous experience, their comments seemed to point to one direction, and it is not buying, but to SHORT stocks.

What do you think?


Mop said...

Excellent points, Waxie! Everyone's afraid to point this stuff out, and you make everything that's happening, make perfect sense.

FACTOR R said...

hey waxie take a look

beach2788 said...

Waxie, save us from this madness!!
Its insane.
Of course the longs said the same thing when hit 700

Looks like here comes S&P 1000, like nothing has happened bad.

Nick said...

Nick said...

Sorry, a good read when you get a chance. It is hard to believe GS did not have to report the December month in there quarter results.

MarketPro82 said...

waxie should setup his own financial show on youtube, so we can spread the word about trendfund. Also jim cramer is an idiot!