Option buyers think much higher in the next ninety days. The right to own FB at 50 ending Feb sells for $2.75--that's 6%.
If you want to get to $50 right now, you can sell the Feb 46 for about $4.35.
See how that'd work?
which will make a mess of money markets. Meantime the dollar has climbed in yen term almost 25% in the past year, while wages are so "high" in China relative to India, folks are moving off shore manufacturing co's to the Muddle East.
The moment altering the mix of QE shows it's uneven head, the more mess the Fed will make of markets as a whole, and have to pull an Obungler routine similar to Health Care.
Problem is, impact will be profound as any other what the foo moment--with unknown consequences.
I suspect a few days of staring at that snake, where everyone is all content and no discontent, then Icahn or Soros, having positioned themselves short the market, will come out with ominous tones designed to Cramer it down our throats.
Silver and gold will do no better, especially since they are diluted by ETF, and now the new Tulip bubble, the bitcoin.
Look. BBY and others are tired of being platforms for folks to come in and review the goods, then shop online at Amazon. I get it. I also like to shop where I don't risk getting refurbished returned goods and a clerk that knows something about the merchandise, not someone I can't find and speaks English badly as a second language. Sorry my Spanish is rusty, and even if I could speak it, the $9 an hour "genius" hasn't a clue other than "cash or credit, Mister"?
See you at $45 by XMAS end.
Not much news on Friday, jobless claims yesterday sunk 21,000--but there was a four day week in there, and
newbies outnumber existing so the net is still minus IMHO. We don't know why the market soared because the numbers looked better at headline level, or because the numbers when you look deep show inclination the Fed shouldn't taper because there is still rot at the base of this recovery.
I suspect both groups reentered the market in droves, and that is what caused the near 2% runup in the Russell. I also suspect that is why altho silver was up, SLW was down.
I saw how that worked.
Jobs came in good today? Did anybody notice what season of the year it is? Oh, never mind, here we go over 16K in the Dow.
Can you hear me Yellen now?
Which will bring us to tomorrow, when folks will remember that this is one more reason for the Fed to make the mistake of starting tapering, our long awaited "correction" according to yahoo, which hasn't mentioned a fall back in YEARS.
Latest bubble talk notwithstanding.
dragged that old tactic out again. BBY doesn't want to be the showroom for your electronic buy where you save $25 and wind up with no recourse, or wind up with a retreaded return instead of new equipment.
Been there done that.
We're in the perform high promise low stage again, today we're chockablock with retail sales which should be good for cars, and muted seasonally for homes at 10AM EST--the big deal is the confused mess that will come out of Fed meeting notes last month, in which the Fed govt "shutdown" will loom unknown, when we all have come to know, it didn't amount to much, except whizz off enough Virginians sitting on their butts to vote MacAuffaloonie into office, a Dem.
Thanks for the cheap shares. Teeny boppers with no money go to TWATTER, folks with cash (meaning better ad revenue--) go to FB.
ICAHN says the market is built on low irates, and perish forbid, they be raised, and the market panics???? HUH?? He need your cheap shares? What BULLTSCHIT! Typical Cramer like move, fan the flames of discontent where none exists, and won't for the NEXT THREE YEARS until this REAL ESTATE DRIVEN DEPRESSION reflates to 7/2007 prices, about 25% from now.....to get rid of the forgotten derivative overhang Bernookie neatly took off the books.....
Why do you think Yellen is being shoo'd in as Fed Chief? GAD people are dumb.
Yellen raise mortgage rates in the middle of next year's real estate buying season? Gimme a phoockin break!!!
Talk about being hung with your own rope, I can see why TWATTER went down 6%, because it has no revenue, but carrying FB with it? That's a buying op.
Talk about turnaround is fair play, the very vehicle ICAHM moans about the highs in the stock market today, is the stock that takes a 6% drop as a result of those remarks.
Great opportunity for cheap shares.
Most telling comment during the Yellen confirmation? Senator: "Just mentioning tapering caused the markets to swoon, and interest rates to soar one percent". Yellen "That's why we need robust growth".
Translation: That's why it's bond buying and QE forever--high paying jobs are going overseas, and if you haven't got your pot already (a 401K vested in Russell 2000 and S and P) new workers will be outdistanced by their forebears in perpetuity. Meaning, NOBODY will believe you can fix unemployment by having everyone work for $9 an hour at Walmart, PART TIME no less.
As to looking at housing for a semblance of "prosperity", that is so 1946. Look to automobiles instead, unless builders want to squeeze their 100% markups, or offer those $25,000 finished basements as freebies (they cost about $3500 to finish) don't look to new housing this spring to get us moving 1946 style.