The market spoke in
four different
tongues today and
it’s important to
translate what it
said...
Jim:
Alright, let’s just
forget what Obama
said for a moment…
let’s forget the
historic inaugural
speech… let’s talk
about what the
market said today…
with its wholesale
slaughter of every
bank, every broker…
no matter how solid…
a sell off that left
the Dow down 332
points… but truly
masked a much worse
pummeling…
particularly if you
owned a bank… the
market told us that
there is no faith
here… that there is
no faith at all in
Obama or in any
parts of the
economy… how do we
know that… because
the market was
screaming out loud
today… in spoke in
tongues… four
tongues to be exact…
the bank tongue, the
oil tongue, the gold
tongue, and the
tobacco tongue…
lucky for you I
speak in tongues… I
understand fork in
tongues, with four
tines… and I can
translate all of
them for you… but be
forewarned… nothing
it had to say today
was pretty… it felt
like a sharp fork in
the eye.
First the banks…
you
could not have had a
scenario… a more
vicious declines in
the banks than we
had today… it is the
worst one I have
ever seen… worst
than ‘87... this
tongue is about to
be cut off for
certain… the selling
was indiscriminately
led by the
unfortunate forced
more than two for
one split of State
Street… that of
course is being
vicarious, the stock
was crushed… once it
was among the most
pristine of banks…
the problems with
State Street quickly
spread to banks that
I am telling you
absolutely do not
need TARP money…
banks that do not
need the governments
help… including the
two remaining
brokerage stocks…
PNC lost 15.54
points… it is down
all the way to
$22... and this one…
to quote… youthful
people, perhaps
children… this one,
is silent but
deadly… if you know
what I mean… the
bank selling here is
overdone, it has
been overdone, it
will remain
overdone… because
the Bear’s are
completely and
utterly in control
of the banks… and
they will not stop
until these stocks
are ground into the
dust of Jellystone
National Park…
almost every last
one of them…
including the good
ones… don’t forget,
they are all bad in
terms of their
balance sheets… not
where they want to
be… but these are
also casualties of
the ETF’s of mass
destruction,
approved by the
worst SEC Chairman
in history,
Christopher Cox…
only President Obama
and his new SEC
Chief Mayor Shapiro,
can prevent endless
bank stock fires...
See all
of
tonight's
stocks
mentioned
on
Yahoo!
Finance,
here...
Tuesday,
January 20, 2009
(Cont'd from
above)...
Jim (cont'd):
Then there is what
we heard from the
oil tongue… the
decline in the oil
stock tells us that
economy is still
completely and
utterly in free
fall… oil prices
have fallen back to
levels we saw when
oil was still
plentiful world
wide… sure demand is
down… but supply is
down much more… but
oil stocks are
predicting that we
will see gigantic
declines in gross
domestic product…
across the whole
world… you simply do
not get the declines
in natural gas
drilling and
integrated oils all
at once… unless
people believe that
we are looking at
double digit
unemployment in this
country… something I
believe the stimulus
plan can still stop…
if it works… but the
market doesn’t agree
with that… the oil
tongue is telling us
that we need
stimulus even faster
than we are getting
it and we need it
big… otherwise, we
are in gigantic
trouble… here is the
sound of the
economy.
Then there is the
gold tongue… oh boy…
this one was wagging
all day, and believe
me it was not the
inflation side of
the forked tongue
that was talking… it
was the chaos side…
remember people buy
gold for insurance
against inflation…
or against the
financial system and
the world economy
falling apart…
against craziness
and entropies… once
again with the
financials under a
withering assault…
and all of the hard
asset stocks that
are used to build
things… steel, coal,
oil, aluminum, going
down… people are
hiding in gold… I
wish this tongue
would stop moving…
because it is hard
to hear a thing over
it’s screaming.
▼ ▼
▼ ▼
▼
Finally, there is
the most frightening
tongue of all… not
to mention the most
stinky… the tobacco
tongue… the strength
in Altria (MO*)
today is
probably the most
worse sign that I
saw… even as I am
fortunate enough to
own it for ActionAlertsPlus.com, my
charitable trust…
look I know the
banks are horrible,
the oils… but listen
to this… Altria is a
totally anti Obama
play… the flip side
of the Obama
infrastructure
stocks that sold off
so badly… as we
predicted the stocks
that had improved
the most leading
into the
inauguration were
the ones people
figured would be the
first to move with
the stimulus… while
at the same time the
one stock that
seemed like the
ultimate Obama
short… the marble
man… Altria… was
actually up more
than any other stock
that I followed…
that is the market
repudiated Obama
totally saying that
he is impudent to
help the economy…
that the recession
will be deeper than
anybody thinks… that
Obama cannot tax
tobacco out of
existence… or ban it
for health reasons…
and possibly we will
all be taking up
butts… because well
we are so darn
nervous.
Oh, sure there are
other tongues beyond
these four... like the
lame tech tongue…
the awful housing
tongue… the
miserable agriculture tongue…
but they are all
just part of the
overall bad tasting
S&P 500... maybe it
is just a tongue
twister… or even a
tongue depressor… or
perhaps the tongue
that I get on the
Sloppy Joe I get at
the town deli…
either way… when it
comes to Cramer…
nothing was lost in
the translation.
Here’s the bottom
line…
▼ ▼
▼ ▼
▼
The Bottom Line!:
The market may be
speaking in four
tongues,… the bank
tongue, the oil
tongue, the gold
tongue, and the
tobacco tongue… but
today they all spoke
in unison… telling
us that things are
ugly… and making us
feel like we heard
from Babble Obama…
not Barack Obama…
have to tell the
truth… have to stay
with Cramer.
It’s important to
know what the market
is saying, no matter
what language it’s
speaking...
