The Stock Market - A daily diary

Wall, I agree with you and i know we've talked about the over leveraging and buybacks that led us over the cliff.  Bailouts should have strict measures,  and disgusting vol bets that amplify stock markets are harmful and expensive.   How much more expensive is the stimulus because of these pricks in the market.  This needs to change.   I'm with you there needs to be changes going forward to make your markets more robust.   The virus was merely the mechanism that put the wheels in motion 

"Our markets "

Here's another crazy bit of information I came across.   The circuit breakers , not to mention the ones used pre market, have already been tripped  4 times this month.   As a background,  the breaker is tripped when there is a -7% drop,  and trading is suspended for 15 minutes.     The last time the circuit breakers were used was in ..... 1997 !  The financial crisis did not see one occasion.  That is astonishing to me, and speaks to the velocity of the drop we've all experienced in this current crisis 

I think you guys are not grabbing what I am saying. If Boeing or the airlines or whomever else wants government cheese then they need to hit the markets and reverse their fake buybacks, take the hit as they should and THEN come knocking. Boeing should not be a 100 buck stock, no way no how...look at their chart it was 30 bucks and lower before. So I am not saying to BK them, rather NO bailouts until they and all reverse their greedy buybacks off the government and the public.

Boeing, the airlines, tech companies all got a Trump tax freebie, that comes out of the pockets of the taxpayer...those funds were owed, accrued and legally claimed as taxes on earnings. Trump let them take those owed funds and most of them paid themselves via buybacks and dividends...little to none went into the business or to the employee which the liar in chief said would happen.

As for private equity, REITS, greedy insurance companies, anyone who took excess leverage well thats part of the game. If I take a 5 team parlay and it hits I get paid, if it does not I lose...same goes for these risk takers. The FED set this environment only to prop markets and to goose corporate earnings because if you look at GDP we did not gain much of anything relative to the expense. The lost savings due to those who either would not want to risk being long the QQQ's or the elderly who should be in fixed income is more valuable than the marginal tick up in GDP. So the environment which forces risk onto those who do not want it is toxic and destructive and should not be minimized as to that risk.

I am actually a capitalist, I think if I take a risk and it does not come in, that is my risk and my loss...not yours to bear. The same goes here...these corps and equity guys know the risks, now take your lumps and move on.

Hey Mugg, .. I know you're a big music guy.  Somewhere, Neil Peart must be smiling at today's big day (+2112 points on the dow).  

I kept hearing today a lot of talk about the potential fiscal stimulus as being the big catalyst for today's advance.    I don't think this is the only reason.  There had been talks of big trillion dollar plans in recent weeks that had little bearing on the markets at all  ; they continued to sell off.  Just as important is Trump's pivot yesterday to get the economy going again sooner than many expected.   I look at the stimulus measure as a bridge to get us to the other side.  Prior to today, we didn't know how big the bridge needed to be.  Now , we have some clarity on the size of the bridge (stimulus money), and how far it is to the other side (time).  Heck, we're a country with a $20T size GDP ; a $2T stimulus would get us through more than a month .  Providing that money to businesses should get us to the other side .    Of course, this isn't an exact science with the numbers , but having clarity on BOTH stimulus money AND a more limited shut down (we hope)  is a big deal.. 

I mentioned yesterday the pivot by the President could have some staying power.  Tomorrow, may offer some clue.  If we go down again in the market, so much for that. Lol..   But if can go up again, maybe we can form a bottom... Who the hell knows, but we haven't had two consecutive up days since this crisis started. 

I hope the Democrats get off their butts and stop with these nonsensical provisions tied to this package. The airline emissions and voting registrations stuff is a horrible tactic and an act against the people. I suppose some validity can be given to green energy as it would propel us away from shale. Russia and SA will continue to be the puppet master so why play the puppet? 

I didn't sell anything today Rush....still 100% all in. Let's make it two in a row tomorrow in the green.

Fully tabulated 6 Trillion. Where does that come from? Asking for a friend. Easter Sunday the new target to come out of your house, que Munchkin song from the Wizard of Oz. IN the Merry old land of Oz!!

gamble,

Yeah you are right the GOP's plan had zero pork in it and went only to small biz and the taxpayers who need it the most.

Both sides play pork ball so try and keep your focus as non-partisan as you can.

I give you that wall. For the record I'm not a Trump guy and I don't want his hands on 500b. So yeah, I see it all ways.

I'm just saying get it done. 

I didn't vote in the last election. Trump had won my vote for his efforts on China but he is royally screwing up managing this crisis.

Hey Gamble.. I'm with you.  Congress needs to act on policies that will actually help companies and their employees that were let go.  This is no time to be pushing personal agendas.. 

Looks like 2 good days in a row.

It's nice to have 2 consecutive up days for sure, Bruin.  We haven't had that in almost 2 months...   That is hard to believe. 

Today could've been a lot better, but we'll take it .  The Dow lost almost half its gains in the last 15-30 minutes or so.  Senator Sanders hung up a Bill for some reason.  I'm sure we'll re-test the recent lows again, because there's still a lot of pain ahead with shocking headlines of unemployment , bankruptcies, and deaths.  But I'm hopeful this all has staying power like I mentioned a couple of days ago. 

Good for Sanders in my book, this bill is a massive pork pie which does little more than give corps some freebies, way way way too much to big corps.

I posted this on March 12th.  Why haven't we shutdown ALL essential air travel?    How are keeping this virus at bay when someone can freely travel around the country spreading the disease ?   Then we hear multiple TSA workers have the virus.  How great !  How many travelers are they effecting , and then they go fly to various places around the country.   We need to be doing a better job of restricting people's movements in this perilous time.   

Wall, I still need to look at all the details of the bill.   I did see it had some conditions for stock buybacks, layoffs, executive pay, and dividend payments,... so that is real encouraging that these companies  getting help don't have complete free reign to misuse the funds.    

Boeing is up almost 60% from its recent low 6 days ago.  Love them or hate them, that just might been a buy of the generation right there...  

 I was waiting for it to drop just a bit more....

The fact that in this current situation the stock is this high is very telling. No way should this stock be over 50 bucks...no way at all. And how is it that these credit reporting agencies arent smacking down some ratings on these highly levered companies who are going to take a big long term hit on their revenues?

Boeing is going to get away with a massive swindle on the front end and the back end...they took the tax freebies, the cheap debt and enriched their shareholders and management and get a bailout with some very minor stipulations AND not have a rating downgrade that might push them out of the FED circle jerk...its a total scam.

Wall. The only people that get screwed are the people that need it the most. $1,200 is a joke with, as you like to say, all business and major corps and some of the stuff on the Dem side is downright comical. 

People will start cheating on their taxes and they have good reason to try to get away with it. It's all a scam.

uhh….my intention was to mention pork but I screwed it up. I'm pretty aggravated.

 There's no way Tesla should be over $50 either but look at that....

Correct, I agree with that as you know. Pull up a chart on Boeing and look at the price history then look at their earnings history and balance sheet. They have exploded debt in the last two years and only have a minor decrease in common shares to show for it. I dont get this price action, its a massive bloated pig and they have a very very cloudy future coming up.

Tesla... Boy, I could write at length about these guys.  Musk is a brilliant engineer, but a lousy businessman, and an untrustworthy one at that.    Being an engineer myself, I know that most are fairly good,  reserved individuals.   He is nothing of the sort, and I hate how he lies with ease.. He would make a wonderful politician.  Lol.  There are many reasons I  would never invest in the company, but high up on the chart is the fact that he just does not seem to be a very trustworthy person.   

I'm sure the Robinhood trading community would start a riot if they read what I just wrote.  Lol.    I read like a month ago that Robinhood had a large number of people heavily invested in TSLA.  I think most of their clientele are Millennials, so that makes sense.  They should be know as the FOMO community.