Dr. Seuss Talks About The Market

March 29, 2001
Goran Yordanoff

I
did not go long technology

I did not buy due to poor visibility

I did not buy the ‘bottom’ as per Pisani

I did not panic buy with the rest of the scared shorties

I studied charts all night long

The fabricated run-up we had, well that was wrong

The investment bankers needed to prop it up for Agere

Or else with all the bridge loans they made to
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With
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It appears that reality is crashing the ball

And with Warren Buffett telling us that he isn’t buying

Could it be all the others telling us to buy are lying?

With speculation running rampant once more

It seems as though most won’t learn until they are poor

For fundamentals really do matter

Who gives a care about “trader chatter”

With the market in a clear secular bear

It doesn’t seem as though most really care

For, as long as the momentum stocks still catch a bid

The ugly bubble we have not rid

Could there be credit quality issues lurking at the gate?

No one cares because the Fed will save us by cutting rates

With everyone and their Uncles promising higher stock prices by next New Year’s Day

I have a feeling that there is going to be Hell to pay

— I wrote this myself on Tuesday night as I slaved over charts, feeling sorry for myself after
the day’s huge run-up.

Once again, after the market has a reflex rally brought on by manipulation and forced short covering (does anyone remember the one we had a few weeks ago when Goldman and Merrill had a few
IPOs they were trying to unleash?) the bottom pickers who have been wrong for the past 3300 Nasdaq points all join hands and claim that they finally got it right. Thank goodness they are all so hard at work trying to direct us as to how we should deploy our capital. As the old saying goes,
“with friends like them, who needs enemies?”

After yet more pre-announcements, earnings misses, layoffs, and general malaise by the likes of Nokia, Nortel, and Palm aftermarket yesterday it appeared as though the market finally got back to focusing on fundamentals and earnings today….or as it appears, the lack of them.Â

Judging by the technicals present at the close of trading today, it appears the weakness will continue in the early going tomorrow as well.

Names to focus on will be:

Microsoft. As Eddie Kwong pointed out Tuesday,
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In addition, the banks and brokers look as though they have resumed their intense downtrends and may be susceptible to further weakness.

In the retail patch, you know, the group that is supposed to pull the global economy out of this funk? Yes, that group. They look lower too.

Lots of caution here, as the quarter still has a few days to go. There is no telling what the grand agenda will be into this quarter’s end. Keep a tight leash on every trade you initiate and don’t get sucked into bear/bull traps as a result of the shenanigans we will undoubtedly witness the next few days.

P.S. Mr. Janikowsky, the CEO of PALM, today wasn’t wearing the 24 karat gold pinstriped suit he wore the day of the PALM
IPO. Amazing how a horrendous quarter can suddenly create humility in areas you wouldn’t expect seeing it. Don’t worry, Mr. Janikowsky, you probably have an excellent career waiting for you selling used Oldsmobiles.

Goran

Dr. Seuss Talks About The Market

BUY THE FEAR, SELL THE GREED

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