Insider Information Even Mark Cuban Can Profitably Use! ~ The Risk Averse Alert

Monday, November 17, 2008

Insider Information Even Mark Cuban Can Profitably Use!

Hats off to Cramer for his comments tonight on the SEC today charging Dallas Mavericks owner, Mark Cuban, with insider trading. Of all the fraud that has brought the world to the brink of ruin, this is the best the SEC can do? Well, adding this to an attempted bailout of a thoroughly unsalvageable financial system just completes a modern-day version of "bread and circuses," I guess...

Now, Cramer also says he can't do the bull dance without a note of fundamental music ... says bad news getting worse means the economy is not bottoming out ... and argues it will not be until better data can be anticipated that he'll worry about being left behind.

But I don't get it. How can he not see the song was, is, and will continue to be the consolidation of financial power ... by hook or by crook ... with a heaping helping of diversionary sugar added for good measure?

The consumer economy? What's that got to do with anything? Is he trying to say that, during the inflation of the greatest credit bubble in history the point we've reached was unforeseeable, and the stock market has been on a decades-long terror only because fortunes were being made on the back of a well-oiled marketing machine to consumers whose perpetual financing presumably would never end?

Well, call me crazy, but all the while the world has been chugging dollar-denominated credit like John Blutarsky does a bottle of Jack Daniels, lo and behold, financial power has been consolidating ... even to the point where one firm has come to dominate the highest office in the land!

Do you really think it is a mere coincidence Treasury Secretary Paulson's bait and switch purposes to continue this trend wherein financial power is consolidated? And what good could possibly be served having a President-elect enter office in the midst of unbounded chaos ... which end, it seems, would be probable were the bottom to fall out from under the stock market?

There's your fundamentals, Cramer.

Now, about those bulls you see in the newspapers and on CNBC... What makes you think they'll ever sing a different tune? Are not these analysts and money managers doing what they're paid to do? Since when have they not talked their book?

If it's negative sentiment you need, then look in the mirror ... and watch Fast Money. The Dylan Radigan Band is not too upbeat either. The unusual negative sentiment you say is missing is there for anyone with eyes that see.

As for there being no one worried about the market going down ... a lot ... I am fairly certain a solid majority of my readers, right now, are worried about this ... a lot.

So, let me temper your notion claiming the market being deeply discounted ... and October's bottom holding up ... is no good reason, in and of itself, for being bullish ... since you think we've still not been served nearly enough monetarist monkey juice (could there ever possibly be enough?) ...


Do you see that first blue dot marking October 10th? On that day 88% of NYSE-traded issues posted 52-week lows ... a record far exceeding the 54% posted on the day after the 1987 crash. Now, that is what I call a deeply discounted market ... beset by an incredibly negative sentiment!

I love technical divergences (which the other three blue dots mark), because here we find evidence that, bottom holding up is coinciding with improving underlying conditions each time bottom is retested. That, in my world, is a plus...


It's all good here, too, Jimbo. More technical divergences worth beholding ... and the kinds of consolidations that make it easy here for me to be the Chip Diller of stock market analysts.

As for today's decline taking the market back into "oblivion," I beg to differ. Volume sings a different tune. I hear strong hands who obviously put some real money on the line last Thursday ... crooning "Come to Papa" ... mopping up the offerings of a diminishing number of players victimized by margin calls...

Fast Money
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