Tag Archive for Pump

Update: Market Looks Ugly, Expect the Government to Pump It Back Up

But I doubt they can do anything about it right this second… The “Humpty Dumpty” stock market is in a bubble and all of the King’s horses and all of the King’s men cannot put this ponzi scam back together again…

So find yourself a hedge and if you think we are in a 30 year bull market for stocks you may need to change professions (kidding, but seriously, this thing looks scary here) — IE don’t stick with asset management but diversify, lol, just my opinion but then again I believe that $900 is a fair price for the S&P as does Jeremy Grantham!…

Stocks are overvalued here and it’s super annoying that the momo junkies keep buying the market’s biggest “scams at this price” names right now so do yourself a favor and look at PE ratios… If there is a number OVER 10 on the PE ratio, SELL SELL SELL… The economy sucks and there are plenty of cheaper stocks out there that offer better risk/reward profiles than CRM and NFLX… (nice call on LNKD and CRM for us BTW… pat on back for making you readers “mad money” lol…)…

Anyways, don’t believe the hypesters here, this stock market is a PIG with LIPSTICK all over its snout… Make sure to play defense and if you want to buy something buy gold or silver or agricultural commodities or raw land… Just don’t buy the IWM at the double top.

PS: VMW broke below $100 and as readers know, we only like this as a pair trade for a CRM short… And also, we don’t really like any names with huge PE’s, BUT if VMW goes over $100 again you can buy it again following the Livermore rule of buying over psychologically important levels when dealing with leading stocks…

I have been bearish on CRM for a while now, so it’s nothing new, but today’s action was pretty awesome from my perch at Hedgephone.com — ORCL and VMW are just so much less hyped and much better investments if you really “Believe” the growth story… I am not a Jim Jones cult type, so for me I’ll stick with empiricism and fact — like the fact that LNKD is a bubble and still a good intraday short even though Altucher got me to cover for less of a daily profit than I usually make from shorting it, LOL….

If you are buying stocks like LNKD it’s because you don’t understand PE ratios… Do yourself a favor and put your money in cash or in a bond fund or in an index fund like SPY but realize that the SPY is likely 40-50% overvalued here as well! The PE 10 is still insane here.