The Funky Divas Tell Wall Street What’s Up

The only thing you changed was love to hate

Money talks, B.S. walks. 

They urge: “Buy now…rally, rally, rally…don’t worry about
trading during holiday weeks…we’ll rally back soon…don’t wait..
just buy.”

returned has NVDA 10 Ebay genomics.”  semiconductors biotechs, short
NVDA, EBAY, “Short suggest:  I>

Money talks, B.S. walks.

My opinions have resulted in over 1 million dollars in trading profits
for my personal trading account in the past 45 days. Not bad for a guy
who’s trading style is so allegedly flawed by his opinions.

Money talks, B.S. walks.

What happened to all the “professionals” who urged us to go
long with abandon during the May highs?  Oh, I almost forgot, Tom
Galvin was back on NBC today and, you won’t believe this, actually was
bullish again. Yes, Tom urged everyone man, woman and child in the USA
to continue going long stocks. What a brilliant man he is.

Now, let’s listen in on a very confidential call between an insider
who is selling his company’s stock like mad and a broker at the firm
that is working the order:

Receptionist:  “Hello,
Credit Swiss Cheese First Bostonian, may I direct your call?”

Insider:  “Yeah, route
my call to that no-good S.O.B. who promised me he was going to sell
all of my shares at $3 higher than they’re trading right now. 
Doesn’t that guy have eyes?  Look at the chart, they’re selling
the crap out of my company’s stock, and we haven’t completed selling
all MY shares yet! Get that low-life
on the phone!”

Receptionist: “One
moment, sir, I’ll put your call through.”

SwissCheeseFirstBostonianBroker:
(Answering the phone with his hands-free headset while practicing his
putt on an ingenious 80s.f. green in his office) “Hey, Chuck, how
can I help you out, buddy?

Insider:  How can you help me
out?  Have you seen where my stock is trading today? We only
unloaded 75% of my load on that last upgrade and jacked up price
target you gave a few weeks ago. What about the other hundred thousand
shares?  You promised me we were going to get an average print of
$59 and its trading $56 and change!!

SwissCheeseFirstBostonianBroker: (Adjusting
his putting grip while squinting his eyes to look back over at the
monitor on his desk) So it is, I see that. Don’t worry one bit, I’ll
just make a phone call and we’ll generate some bids really quick.

Insider: How the hell are you
going to do that?

SCFB Broker: (Laughing) 
Where have you been hiding?  Haven’t you noticed how we’ve been
able to manipulate your stock by doubling our 12-18 month price target
every month or so?  Hell, when your little video gaming stock was
trading at $7 just 11 months ago, did you ever think you’d be selling
your shares up here in the upper 50’s and 60’s?  Just leave it to
me, we got this thing all figured out.

Insider: Don’t you think you’re
pushing your luck with this thing?  Don’t you think the retail
investor and the SEC have caught on to your shenanigans?  Why
don’t you just get the darn order done and quit stressing me out.

SCFB Broker:  Technique,
Chucky, technique.  We can’t just dump all those shares all at
once, there just aren’t enough bids to absorb them.  After all,
you don’t expect Goldman or Merrill to buy up these shares at these
prices do you? Chucky, we gotta just keep reiterating our “strong
buy” on this thing a few more times and, voila, we’re all filthy
rich. 

Insider:  But you’ve done
that 4 times already! How many more times are you going to reiterate
the reiteration of the reiteration of the strong buy?

SCFB Broker:  (Laughing) 
There are no rules, Chucky. The SEC hasn’t caught on yet so why should
we care about appearances. Just relax and let us have our way with the
poor shmuck out there who thinks the Microsoft X-Box is coming out in
a few months, and will take over the world. It’s like taking candy
from a baby (Watches the ball roll into the cup) Yup, just like taking
candy from a baby (laughing).

Let’s take a look at a stock that illustrates this to a tee:

Precision timing, execution and cooperation made this endeavor take
place flawlessly under our very noses. In fact, it happens every
single day. Do any remember my discussions about (CHBS),
(CHIC),
and (HOTT)? 
Have you looked at what happened to those after the analysts pumped
while the insiders were selling like mad? Stocks such as
(ATVI),
(ELBO),
(THQI),
etc. and others in the video game sector have been pumped wildly for
months. What will their fate be?

From a technical standpoint, the trend has continued to be our friend
as we have been successful in shorting all rallies. The S&P cash
is approaching very solid Fibonacci support in the 1173-75 area which
should (emphasize “should”) provide short term support. The
Nasdaq cash appears to be approaching the area of support from April
10th that I have repeatedly shown in my past commentaries. We should
have a chance to play a technical bounce from firm support in the next
few sessions. Be patient and don’t catch the proverbial falling knife.
The market has produced an awesome “long squeeze” since the
July 4th holiday which, I’m sure, has provided a much needed reality
check for those who were calling for an immediate summer rally. It is
unclear what type of pattern is playing out over the intermediate term
as April’s lows are clearly still in place. We lightened up
considerably in our short exposure today and took huge profits in the
(EBAY)
short I discussed on “The Dr J and The Traders” show a few
weeks ago. Be patient and play the charts. Ignore everything else.

Goran