Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Are You Ready for Market Mayhem?

Stock-Markets / Financial Markets 2012 May 21, 2012 - 08:28 AM GMT

By: Money_Morning

Stock-Markets

Best Financial Markets Analysis ArticleShah Gilani writes: There's going to be a lot of very heavy betting over the next few days, weeks, and months on what's going up, what's going down, and what's going around:

1.How far will Facebook IPO price go?
2.How far DOWN from here will JPMorgan go, with the FBI and DOJ now sniffing around?
3.How far AROUND the globe will the fallout be if Greece loses its game of chicken?


If you don't have the stomach for what's going to feel like an out-of-control rollercoaster ride, sideline yourself.

If, on the other hand, you like a lot of action, welcome to Mayhem - the preamble month to what will likely be the Summer of Some Discontent.

That is, unless you like rapid-fire trading.

Which, by the way, is not just fun, but can be very, very profitable. I'm in, and so are the subscribers to my Capital Wave Forecast. We're gearing up for some heavy betting in the weeks and months ahead.

So, what's front and center today? You know. The big three headlines: Facebook, JPMorgan Chase, and Greece. Are you sick of hearing about them? I'm not. I like trading the headlines.

Here's my "heads-up" on the big three headlines.

1) Facebook is going to be a Wild Ride, For Sure
I didn't even try to get into the Facebook IPO.

Too many people at too many brokerages and banks that own brokerages don't like me because I'm constantly calling them out on their you-know-what, so I had no chance.

But if I was to get IPO shares, or - better by a mile - if I was smart or lucky enough to own some VC (venture capital) or insider shares between $1.00 and $5.00 (which is where the insiders own shares at), you can bet your bottom dollar that I'd be flipping those shares. Maybe not all of them, but I'd sell at least half, depending on how the stock trades.

I like Facebook as a company, and I like it as a stock to own.

Personally, I don't bother much logging onto Facebook myself, and I don't post stuff there (I'm too busy doing things to make time to write and tell my "friends" what I'm doing, because I'm usually doing it with them).

That doesn't mean that I don't get it.

I know a LOT of people who are on FB all the time. Good for them, and that's, of course, good for the company.

For sure, I will buy FB shares in the future, and I may load up on it if they do what I hope they do with their about-to-be monumental war chest of equity currency. I'm just not buying the "IPOhhh" hype.

You can read more about my thoughts on the good, bad, and ugly of Facebook's debut at Money Morning.

I'll leave you with this about that: FB's coming out could be the top of the market.

On to JPMorgan Chase...

2) The FBI's Involvement Means One Thing
What in the world is the FBI doing, opening up an investigation into JPMorgan's big trading loss?

And what is Attorney General Eric Holder (wish he couldn't "hold" onto his job), unfortunately the top dog (and I mean DOG, sorry all you real dogs, I'm a dog lover, just not that species) at the Department of Justice (oh, don't get me started, I'll end up Fast and Furious), doing, opening up an investigation into the loss?

Forget about the DOJ. They've lost a lot of credibility in my book, because they're far too politicized an agency. And that's more dangerous than disgusting to me.

But the FBI?

The FBI isn't interested in regulation. It's about criminal activity.

Folks, if the FBI is involved, there must be more than just suspicion - something must smell of criminality. (Hopefully they're not just going around attacking people and institutions based on just "suspicion," but hey, the way this country has drifted from our Constitution and our inalienable rights, anything is possible... can you say The Patriot Act? TSA?)

I'm holding off buying JPM until I see where this is going. Too bad, because it's been getting close to a buy. I had told you on Sunday that I'm a buyer here and down 10% to 20% lower. Now, I'll wait a little to see if I can start buying lower than where it is now.

In the end, JPM is too big to fail and will kick ass in the future.

And last but not least, my favorite...

3) The Greek Tragedy
There's a very, very dangerous game of chicken being played out between some ascending political factions in Greece and the rest of the Eurozone, and in particular, Germany.

Left wingers in Greece are saying the EU won't kick them out of the currency arrangement they're a part of, and they won't kick them out of the Union.

Let me say this about that.

They are dead wrong on the first count and dead right on the second count.

The Germans have their Achtung Baby boots all over Greek necks. They want to force harsh austerity measures (make that even harsher than they already have imposed) on Greece if they are going to give them any more of German taxpayer's hard-earned euros. But German taxpayers may revolt against the German government giving up its wealth to save a profligate neighbor who flaunts its laissez faire - some call it unfair and just lazy -ways in the face of all of Europe's helping hands.

If the chicken can't cross the road, the world will be eating raw chicken soup with all its attendant salmonella implications. And we're all going to lose some weight, the ugly way.

It's just all such Mayhem right now. I don't see any sanity or saving grace coming our way any time soon.

But, boy, do I hope I'm wrong.

If I'm not, I'll be making a lot more short bets than I have on now.

Source :http://moneymorning.com/2012/05/18/heavy-betting-in-the-middle-of-mayhem/

Money Morning/The Money Map Report

©2011 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in