Anyone notice that the stock market is not behaving normally? The up moves are being cut short, not achieving their promise, and all of the technical rules are being breached? And the hoped-for bounces are all dead cats?
The only people making sure money now are the advisors, who risk nothing, except perhaps the cancellation of subscribers. They used to try and forecast the future, now they just shrug their shoulders and tell you what happened yesterday, as if we didn’t know.
And Mad Money Jim Cramer, who has successfully taken the stock market into showbusiness, for all the world like Pee-wee Herman having a ball in his CNBC Playhouse. Except he has lost tons of money for his “booya” fans. Well, you already know what I think about him! Mad Money.
And the money-making short sellers and put option buyers. Who is promoting those activities to the public? NOBODY, that’s who. Meanwhile, incredibly, the S.E.C. “uptick” rule promulgated by the Securities Exchange Act of 1938 to rein in the professional short sellers, the bear raiders, that inflamed the 1929 stock market crash, was eliminated on July 6th. Read my views here.
So who is promoting long buying? Let’s start with the President of the United States, who last year sought legislation to allow pensioners to take more charge of their funds, and as loyal Americans, buy into American industry.
And how about the IRS? Rules. You can’t play the short side in a pension fund. Try and do it, and your broker won’t let you. Even in non pension funds, try to short many stocks, and your broker will tell you “no stock is available to borrow.”
The stock market today is a crap shoot. Be honest, NOBODY KNOWS ANYTHING. Just like Hollywood.
Just like Vegas, the odds are still in favor of the bank. On Wall street, the bank is the specialists, the market makers, the day traders who walk the floor, and other insider professionals.
Until and unless things change, you should stay in cash (if you have any left), and enjoy a flutter on the Lottery along with a good night’s sleep in your home (provided you are not about to be thrown out by your mortgage lender or an angry spouse.)