Wednesday, September 10, 2008

Salesforce, Fedex and Mr. Magoo

Many times in the market traders get caught up in what they want to happen versus what is happening. This can lead to disastrous consequences as you can see with various hedge fund and Wall St. broker dealers.

Almost like a young child at Christmas time I have a want list. Right now I want.....

to be long USO.
to be long UNG.
to be long KOL
to be long UGA
to be long OIH, DIG, FCX, RIO, PBR MRO, et al
I am long physical gold and silver but I want to get longer

The problem is I can't. Why? For the most sane reason of all, we are in a bear market and in a bear market ALL stocks fall and these are no exception. Now some stocks will fall less than others, but across the board the vast majority will fall. In a violent storm even the sturdiest of vessels take on water and sink.

Like the village idiot, I have attempted to be long some of these names at various times over the last few months. Excitedly watching them pop initially to profitability only to get pounded back down. As famed trader Jesse Livermore's friend Partridge admonished anyone who would listen
"You know it's a bear market".

I caught the replay of the money honey's interview with Mr. Magoo errr excuse me, I meant to say former Fed chairman Greenspan. Easy mistake to make as they could be one in the same in their stewardship of the Fed. I laugh at how Greenspan can see now how Fannie and Freddie were an accident waiting to happen. Crystal clear now isn't it Mr. Magoo, but when you were head of the Fed you couldn't see anything until hindsight. Just like endorsing adjustable rate mortgages to the masses at generational lows in interest rates. Pure Mr. Magoo for a reason. This campaign of image repair could be the pinnacle of hypocrisy, absolutely staggering.

CNBC has basically become the bull horn for these idiot, pretend capitalists. All of them. Bernanke, Paulson, McCauley, Gross, Mack, Thain. Nothing more. CNBC, the new fountain of misinformation. Joseph Goebbel would be oh so proud of this network.

I find it almost comical that the treasury and Paulson had the nerve to send in Morgan Stanley to Fannie and Freddie to check out their books. It didn't take them long to figure out how extensive and pervasive the book cooking went at Fannie and Freddie. You gotta hand it to Morgan as only a crook would know where a crook would hide the loot. How fitting !

I have an idea, if it is now okay for the fox to be in the hen house, why not let Merrill Lynch examine Morgan's books, let's let Lehman, before they close up shop for good, to examine JP Morgan's books and so on. Ya think we might get some transparency? In the least it would be entertaining to watch the cannibals turn on one another.

2 charts for us to keep watch on today being Salesforce.com and Fedex.



News from last night is the Salesforce.com ticker CRM(chart above) will replace Fannie Mae in the S&P500. We will get a pop from the indices re-balancing. I intend to get shorter this name on this rally. I will be keeping my eye on the $55-56 level as an area to add to my position



Fedex (chart above) announced better results due to a drop in fuel costs. The stock should get a nice pop today, which is nothing more than a relief rally.


Good speculating to you all and never ever forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Short 1 unit Int'l Bus Machines ticker IBM @ $129.05 stop at $126.36
Short 3 units FedEx ticker FDX @ $87.10 stop at $88.16
Short 2 units of Apple ticker AAPL @ $178.05 stop at $177.76
Short 1 unit Salesforce.com ticker CRM @ $57.05 stop at $60.62

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