- Japan's unstable market; and
- criminal charges against SAC Capital.
It's Just a Mild Hangover Posted at 10:58 a.m. EDT on Friday, July 26 At last, we have one of those days when we come in and people say, "We have to sell because..." And the "because" isn't answered with a U.S. situation, such as tapering or earnings, or a fight between the House and the president. Today it's all about whether Japan is in trouble. I am adamant that Japan isn't in trouble but that the market there has become unstable in its volatility, and it does freak people out. I come back to the high quality of earnings we have seen all week and a belief that we can't throw out the baby with the Japanese bathwater. Just think last night and this morning about the ratio. We had a bad number from Expedia ( EXPE) that is hurting the travel stocks, but if you go over the quarter and the conference call, you would think that that's the wrong takeaway and that the other travel names should be bought. In the meantime, you have terrific numbers from Starbucks ( SBUX) and Gilead ( GILD) last night after the close -- two huge-cap stocks -- and then good numbers from Weyerhaeuser ( WY) and Stanley Black & Decker ( SWK) this morning, both of which could have tripped us up and didn't. Don't forget that Amazon ( AMZN) reported a quarter that was widely viewed as disappointing, and it didn't take the Internet cohort down. In fact, it has barely kept down Amazon itself.
The Game Looks Rigged Posted at 12:32 p.m. EDT on Thursday, July 25 Did you ever think that when you saw a stock move that someone knew something you didn't? Did you ever suspect that the "big boys" had the call and you were just a peon, someone to be fleeced in a game of Three-Card Stock Monte by people who had the inside skinny when you never could, people who knew what the quarter would be before it was reported, what the next takeover would be and where the next shortfall would occur? If you read the indictment of SAC Capital that was filed today, you can draw only one conclusion: Your suspicions were absolutely right. It was rigged by the big boys, at least by this multibillion-dollar hedge fund. The implication of this indictment is that they had the call pretty much consistently, meaning that they knew what was going to happen in a broad range of stocks, stocks too numerous to mention here but they include Nvidia ( NVDA), Dell ( DELL), Intel ( INTC), Cisco ( CSCO). Cypress Semi ( CY), Broadcom ( BRCM), Yahoo! ( YHOO), Microsoft ( MSFT), Research In Motion ( BBRY) and AMD ( AMD).