Mr. Sensitive

October 26, 2013

FSX Saturday Update

Stocks are at all-time highs again, and it’s for the same reason they’re always at all-time highs nowadays—the Federal Reserve is blowing the biggest economic bubble in the history of the world in the bond market (the size of which dwarfs that of the stock market).  Now investors have nowhere to turn for yield but the stock market, and they never had anyplace else to go for growth.  I don’t believe the stock market overall has reached bubble levels, even if some stocks and sectors have.  The global bond market, on the other hand, has been manipulated by central banks on a scale unprecedented in any market at any time in history.  The Fed realized that the way to prevent a bubble from bursting (as happened in 1929) is to blow another one right beside it—it works for little kids playing with bubble wands and it works in financial markets, too.  To prevent the late ‘90s stock market bubble from bursting, the Fed lowered rates and loosened credit to inflate an even more massive bubble in housing and mortgage finance.  When that bubble began to thin out and burst in 2007 and 2008, the Fed dropped short term rates to zero (!) and bought trillions of dollars in bonds to drive down long term rates (so-called QE), inflating a bond-market bubble the likes of which the world has never seen.  And when this bubble bursts—as all bubbles do—what then?  Beats me.  If the rise in stock prices doesn’t take a break soon, we will reach bubble levels in equity prices as well.  Twin bubbles in stocks and bonds?  You won’t see anything scarier this Halloween, I promise you that.

The Family Stock Index hit another all-time high as well, blowing past 17K to close at 17,255, up 2.2% for the week.  I don’t even want to think about how technically overbought we are—so I won’t.

 

Advancers

  • Nicole M. (COLM) +10%.  Nicole and Mario are having a boy, and yet investors drove COLM to a new 52-week high on heavy volume.  Could it be that little boys aren’t all terrible monsters?
  • Brinkley (BCO) +8.7%.  Speaking of terrible monsters, mine is—I think—really getting close to talking.  I get a lot of da-da and da-dee from him but I need definitive evidence that he’s talking to or about me, and I’m not sold yet.  I got burned in the whole pointing-at-the-cat-and-saying-‘cat’ fiasco of two years ago, and the bar is high this time.  Investors seem to be buying, though, and Brinky took out his 52-week high with relative ease this week.  All I know for certain is that whenever he does decide to start talking, it will be for some nefarious purpose or other.
  • Jodi Ann (JOY) +7.2%.  Maybe it’s the combination of Eureity and the y-chromosome that gives Brinky his devilish might.  Jodi Ann and Marcus are having a girl, and the market likes that, too.
  • Dustin (DST) +5.8%.  Dustin has been the rock of the FSX during the last three months of extreme volatility, putting in a series of new highs without the sort of powerful surge that can detach a stock from its technical moorings.  Dustin is reliably Dustin, so perhaps this stolidity shouldn’t be so surprising after all.
  • Ruby (RJET) +4.1%.  Ruby, on the other hand, has been all over the place lately.  After a five week slide leading up to her 60th birthday—during which RJET shed 16%–she’s rallied 11% in the last two weeks.  Ruby’s #1 year-to-date performance ranking within the FSX was threatened by Zondro, Reagan and Marisa (the latter’s gain, at least, is capped) but with the three trailers up between 72 and 78 percent, the +115% RJET’s posted through nearly 10 months seems fairly secure.  A well-timed tank job that gives Reagan the narrow victory might be a good idea, but what do I know?  I’m just trying to stay in the green for the year.
  • Katie (CATY) +3.5%.  Katie’s all but secured another positive year, with a 31% gain through Friday.  Closing above $25 for the first time since the crisis began more than five years ago, CATY’s climb off the 2009 lows around $7 gives her a performance few can match.  REGN, of course, has zoomed from $12 to $300 in that time, but we mortals shouldn’t judge ourselves by Ray Gun standards.

Decliners

  • Justin (SCI) -2.8%.  Justin’s getting way too skinny.  Just check out the cover of Business Week, highlighting SCI:

deathinc

The artist may have taken a few liberties, but still.

  • Wilson (WILC) -3.0%.  Wilson’s not too skinny, as you can see.

wilson

  • Lucas (LEI) -10%.  I can’t get rid of LEI fast enough.  I don’t know what should replace it, but thinly-traded penny stocks are definitely not an option.

 

Name Ticker 10/25/2013 Change
Brinkley BCO $32.02 +2.55
Charlotte ICE $196.00 -2.22
Dustin DST $84.14 +4.59
Ghost Marisa MOLXA $38.47 +0.01
Icarus FAST $50.63 +1.43
Jenny JNY $15.31 +0.31
Jodi Ann JOY $58.09 +3.89
Justin SCI $18.54 -0.54
Katie CATY $25.56 +0.87
Lee TGI $73.99 +1.64
Lisa LNCE $29.60 -0.07
Lucas LEI $1.15 -0.13
Lulu LULU $72.66 -0.09
Marcus MCS $14.75 +0.48
Mario T.E. MGEE $57.22 +1.39
Mario T.Y. MAR $44.49 +0.99
Namilita NL $11.29 -0.16
Nicole E. NICE $41.60 +1.06
Nicole M. COLM $69.35 +6.47
Reagan REGN $302.24 -1.32
Ruby RJET $12.23 +0.48
Wilson WILC $7.17 -0.22
Winston ED $58.59 +1.73
Zero ZAGG $4.86 +0.08
Zondro ZQK $7.56 +0.11

 

 

 

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

Blog at WordPress.com.

%d bloggers like this: