Mr. Sensitive

September 21, 2013

FSX Saturday Morning Update

Filed under: Uncategorized — lbej @ 09:34

This was Fed Week—I mean, every week is Fed Week, but this time, seriously, it was Fed Week.  And the market loved it, just like it has for the last five years (and +9000 Dow points).  Over the weekend, Larry Summers, unqualified slimeball and Obama fave, withdrew his name from consideration for the position of Fed Chairman.  This is awkward for President Obama, because the reason he fired Ben Bernanke in the first place is so that he could appoint his buddy Larry to the second-most-powerful office in the country.

benandl

Too bad for him that several senators from his own party (including my favorite, Elizabeth Warren) told the president in no uncertain terms that a Summers nomination wouldn’t make it out of committee.  When I learned about that righteous smackdown, I felt better about being a registered Democrat than I have in a long, long time.  With yet another fight with the lunatics in the House looming, this was not the time for Obama to do something so stupid as nominate that cretin Summers.  Anyway, now it’s on to Nominee B for Team Obama, probably Janet Yellen.

obamayellen

Ha ha ha ha ha.

The market rallied on Monday in response to the Summers bitch-slap, then held its gains through mid-week.  Wednesday was the Fed Day in this Fed Week, with the latest FOMC pronouncement on monetary policy scheduled for 2 pm.  Everyone expected a tapering of the Fed’s bond-buying program.  Everyone.  Ben and his lieutenants have been preparing the markets for a September reduction in QE for months, and the only lingering doubts were regarding the size of the reduction ($10 billion to $15 billion was the consensus expectation).  The Bernanke Fed has been emphasizing transparency and communication, and there was no way they wouldn’t taper.

They didn’t taper.

The Fed announced that economic conditions didn’t justify a reduction in the size of the bond-buying program, and that the Fed would continue to add $85 billion in bonds to its balance sheet each month going forward.  Furthermore, they said there was no timetable for a taper.  In response, the Dow and the S&P 500 immediately soared to all-time highs.

Damn it all to hell, Ben.

This is going to end badly.  Ludicrously easy money that does nothing to reduce unemployment (structural investment and trade flows prevent that) and only boosts corporate earnings and bank reserves?  Check.  Stock prices at stretched valuations on top of managed earnings dependent on cost cutting in the face of dwindling revenues (gosh-darned structural investment and trade flows again)?  Check.  The biggest asset bubble in the history of the world—the bond market—inflated recklessly and fecklessly by the Federal Reserve?  Check.  How in the hell are we going to get back to anything like a free market?  I have no idea.  The only thing that’s clear to me is that there’s now but one reasonable choice Obama can make when he picks a nominee to lead the Fed:

Ben Bernanke.

There’s no way Bernanke should get to ride off into the sunset without having to deal with the consequences of his bubble-blowing—that’s what Greenspan did, and how did that turn out?

You know, maybe that’s why Summers bowed out.  The rats are the first ones to desert a sinking ship, after all, and they sure as hell don’t ask to be captain.

The Family Stock Index likewise rallied to yet another all-time high, outperforming the major averages for a third straight week.  Even after a Friday pullback, the 16,556 closing level represents a 9.2% advance in just three weeks and erases all of the August losses.  I did my best to restrain the irrational exuberance, but there’s only so much one man can do in the face of a bubble.  Jodi Ann tried to help—go Team ’77!—and Zero made a token effort, but the other 22 were all in.  The sky’s the limit, maybe, but the ground hurts.  I’m just saying.

Advancers

  • Marcus (MCS) +8.9%.  There comes a point in every man’s life when he has to tell the pinheads to talk to the hand, and this may be the time for Marcus.  Separately, can we bring back ‘talk to the hand?’  I think it’s time.
  • Lulu (LULU +7.6%) and Charlotte’s cats (NL +5.7%).  Marisa’s off the market (and still dead), so there was a run on cats this week.  It’s simple supply and demand.
  • Jenny (JNY) +6.0%.  Jenny has straight As so far, and she’s as excited about what she’s being taught as I’ve ever seen her.  Plus she’s a good kid.  Is this really what middle school is going to be like?  It’s a good thing I have this big wood desk, because I’m going to have to keep knocking on it.
  • Nicole E. (NICE) +4.9%.  When Team DW breaks through to fame fortune and fortune in the entertainment biz, I imagine Nicole will be the one to open up whatever professional cans of whoop-ass need opening.  She’s hard-core.
  • Ruby (RJET) +4.9%.  Speaking of hard-core, Ruby is swimming 60 miles a day and planning to weigh 60 pounds by her 60th birthday.  That’s the word on the street, anyway.
  • Mario the Elder (MGEE) +4.1%.  The market is saying the Pirates will make the playoffs.  Did you catch that?  It was the first time I’ve ever mentioned baseball in the FSX update, and I expect it to be the last.
  • Reagan (REGN) +3.7%.  Reagan crossed the $300 barrier for the first time this week.  When I started the FSX in April 2010, REGN was at $26.  Just let that sink in.

Decliners

  • Jodi Ann (JOY) -1.7%.  I knew she’d get her Brinky Cup picks in on time this week, really.  Shame on the market for doubting.
  • Lee (TGI) -7.5%.  Ugh.  I put out a press release this week (I have got to stop doing that) disclosing that program costs would be higher than expected.  That was a sanitary way of saying I’m $68 million over budget.  Look—I know, okay?  You don’t have be a jerk about it.  I have one thing to say in my defense:  it’s time to stop arguing and agree that “Get Lucky” is a much, much better song than “Blurred Lines.”  It’s the only way we can all move forward together.  Thank you.

 

Name Ticker 9/20/2013 Check
Brinkley BCO $27.86 +0.71
Charlotte ICE $182.13 +1.60
Dustin DST $76.74 +1.96
Ghost Marisa MOLXA $38.43 +0.11
Icarus FAST $50.16 +0.08
Jenny JNY $16.20 +0.91
Jodi Ann JOY $52.91 -0.89
Justin SCI $18.65 +0.22
Katie CATY $22.71 +0.31
Lee TGI $69.30 -5.60
Lisa LNCE $29.18 +0.86
Lucas LEI $1.32 +0.01
Lulu LULU $73.59 +5.22
Marcus MCS $14.22 +1.16
Mario T.E. MGEE $54.23 +2.16
Mario T.Y. MAR $43.17 +0.31
Namilita NL $11.42 +0.62
Nicole E. NICE $40.91 +1.91
Nicole M. COLM $59.88 +0.51
Reagan REGN $300.80 +10.83
Ruby RJET $12.98 +0.61
Wilson WILC $7.17 +0.13
Winston ED $55.97 +1.09
Zero ZAGG $4.51 -0.04
Zondro ZQK $6.82 +0.13
Advertisements

Leave a Comment »

No comments yet.

RSS feed for comments on this post. TrackBack URI

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Create a free website or blog at WordPress.com.

%d bloggers like this: