Mr. Sensitive

January 25, 2014

FSX Friday Update

Filed under: Uncategorized — lbej @ 08:50

(This was finished yesterday and I could have posted it but I didn’t so it’s closer to being the Friday Update than the Saturday Update.  That’s just math.)

Did the bubble burst this week?  Heck no.  Remember, we’re replaying the 2000 Nasdaq bubble here, and that means we need a sharp January pullback to set the stage for the big Sprint-to-Disaster event.  After two days of selling, the Nasdaq Composite—down 90 points today alone—is less than three percent below the 13-year high it set two days ago.  What about the Dow and the S&P 500?  Aren’t they broader indices and more indicative of the state of the markets and the economy overall?  Not anymore—this is the year 2000, and the old, stodgy companies in those indices don’t matter.  Netflix is a great company—who cares that it’s trading at 200 times earnings?  Amazon is building drones to brush your teeth and tie your tie every morning—who cares that it’s trading at 1,400 times earnings?  Gilead Sciences is going to cure every ailment from bunions to ebola—who cares that it’s trading at 52 times earnings (a bargain in this market).  GILD was up four percent on Tuesday to reach an all-time high—on top of a 113% gain in 2013—and there was absolutely no news to explain the move.  Jim Cramer’s explanation on CNBC: the stock is “charmed.”

Believe it or not, no one on set with Cramer asked him if he was joking.

If I’m right, the market sell-off will continue next week…and then it will be off to the races.  How fantastic would it be if the final bubble the Fed blows is a repeat of Nasdaq 5,000?  After all, it was the bursting of the last Nasdaq bubble thirteen years ago that the Fed governors decided to cushion through monetary easing.  That easing produced a housing bubble that threatened to destroy the world economy when it burst, and the Fed cushioned that collapse by inflating an even-larger bubble in the bond market.  Over the last three years that bond market bubble has driven yield-starved investors into stocks, and now we’re back where we started!  There are some differences, of course: now we have budget deficits instead of surpluses, a weak job market instead of sub-4% unemployment, and a Federal Reserve with no arrows left in its policy quiver.  Sigh.

The Family Stock Index underperformed everything again; today’s 383-point drop left the Dow in the dust.  Three weeks into 2014 and 20 of the 25 FSX members are in the red.  Double sigh.

Advancers

  • Mario the Elder (MGEE) +1.7%. Jenny: Why’s Grandpa up? I’ve got no clue. Katie: Dad has a great new idea for grocery delivery that he’s excited about. I guess it’s going to be a success! Jenny: Grandpa has a great new idea for grocery delivery that he’s excited about. See? I knew.
  • Wilson (WILC) +1.5%. Jenny: Wilsie is up because, um, um, um, uh, he replaced Zondro as the head of the pet society thingamajig.
  • Jenny (GNE) +0.5%. Jenny: I’m up because it’s a new quarter. And I get to take the SATs tomorrow. And I re-read the Gallagher Girls series, and it was great again. It was even better this time because I wasn’t scared that Zach and Cammie weren’t going to end up together because I knew they were. Reagan: She’s mean, and she likes being mean. It’s one of her pastimes.
  • Marcus (MCS) +0.4%. Jenny: Uncle Marcus is up because it’s a new quarter for them too, right? Which means all of his students started out…he won the Brinky Bowl! Lee: I’m going to send him Brinky as a prize.

Decliners

  • Katie (CATY) -4.0%. Jenny: Mommy, you’re down because I had something but it’s rude. Your hair’s got gray in it. I’m kidding, Mommy. Because you were stressed because we can’t find a calculator. Katie: I’m down because my daughter’s rude. And because we couldn’t find the calculator she lost. Jenny: I didn’t lose it. I just misplaced it.
  • Lucas (CTG) -4.1%. Jenny: I think he isn’t excited it’s a new quarter because he was doing awesome the last quarter and now it’s a new quarter. Reagan: He’s a big grumpy butt because he hates school.
  • Reagan (REGN) -4.2%. Jenny: She’s grumpy because we have to make her a shower schedule. And she just stomped her foot. Reagan: I’m not grumpy! You’re all meanie-butts! Well, Jenny’s a meanie-butt!
  • Icarus (FAST) -5.3%. Jenny: He recently realized that his nickname is Icky, like gross.
  • Zero (Z) -5.8%. Jenny: Zero, let’s see. He realized his name is Zero, like zero. Reagan: And Zero didn’t get to come party in the hotel with us.
  • Brinkley (BCO) -5.9%. Jenny: Brinky’s down because we’re making him choose between things, we’re putting him through such hard work. He also hasn’t been feeling good, but that’s not as important.
  • Justin (XOXO) -6.3%. Jenny: Justy is down because I think he is having spelling problems. I think he recently had to write an article with all his science stuff and he spelled some big word wrong. And little ones too.
  • Jodi Ann (JOY) -6.3%. Jenny: I think she’s realized that if she gets up every time the baby gets up, she shall never sleep.
  • Zondro (ZQK) -9.7%. Jenny: Zondy is down because he keeps getting locked out of there because for some reason he likes to jump over the gate and out into the hall, but then realizes he wants to get back in, but he can’t.

 

Name Ticker 1/24/2014 Change
Brinkley BCO $32.96 -2.08
Charlotte ICE $204.36 -2.51
Dustin DST $88.76 -2.37
Icarus FAST $45.09 -2.52
Jenny GNE $9.95 +0.05
Jodi Ann JOY $52.70 -3.53
Josie Ann JCOM $47.03 -1.80
Justin XOXO $13.63 -0.91
Katie CATY $24.46 -1.02
Lee TGI $76.98 -1.32
Lisa LNCE $27.29 -0.94
Lucas CTG $17.37 -0.75
Lulu LULU $47.62 +0.13
Marcus MCS $13.53 +0.06
Mario T.E. MGEE $57.06 +0.98
Mario T.Y. MAR $49.76 -0.86
Namilita NL $11.05 -0.41
Nicole E. NICE $40.58 -1.46
Nicole M. COLM $74.54 -0.84
Reagan REGN $279.61 -12.39
Ruby RJET $10.24 +0.03
Wilson WILC $8.32 +0.12
Winston ED $53.65 -0.31
Zero Z $80.78 -4.99
Zondro ZQK $7.13 -0.77

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