Bill Cara: The banks crash on Dow triple-digit winning day, Wed., 6/14/2006 9:33 PM

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June 14, 2006

The banks crash on Dow triple-digit winning day, Wed., 6/14/2006 9:33 PM

Is it not amazing that Wall Street refuses to acknowledge that this is a bear market, and that their own employees are hitting every bid they can muster?

Today the Dow was up +111 points. Are you convinced everything was coming up roses?

Apparently the broker-dealers themselves were using this late session rally to blow out stock "- yes, their own!

Look at the loser board today and ask if your financial advisor was pumping you to buy his or her stock?

There you have it: money center banks, regional banks, insurance, etc. -- all smashed. This is the loser board on a triple-digit Dow winning day.

Even Goldman Sachs' chief strategist Abby Joseph Cohen was on the stage today pumping the audience to buy stock.

Now think back to how many times you heard a CNBC Talking Head from Wall Street or a CNBC "personality" tell you how bad were the oils and the metals and gold today. Right?

I am not making this up, right?

So, look at the winner's board today. Isn't that amazing?

I say, Eliot Spitzer, where are those handcuff's? The Ratcatcher Cara wants to make a citizen's arrest.

Posted by Posted by Bill Cara on June 14, 2006 09:33:31 PM | Category: Cara Today in the Market

Discourse

Amen brother!

However, the establishment is too big and powerful to take on in the current environment. It seems to be getting worse as the big bankers venture into purchasing more and more assets for investment. The list of conflicts just keeps growing.

All we can do is use our common sense and analysis of the true market environment to avoid these sucker's rallies. The ideas and discussion are here to make the financial market more transparent. Thanks Bill!

ps-
did anyone see kudlow and company today? I caught part of it. He started blabbering about how "we crushed gold and have it were we want it." If someone can post the exact words from his mouth I would be grateful. It was creepy and makes me wonder how far "kudlow and company" and his friends will go to keep PM down.

Posted by: cb at June 14, 2006 9:57 PM [link]

CB, I didn't catch the Kudlow treatise on gold, but I did hear Dr. John Rutledge babble on about how the People need to hand the Internet over to the Telco's and Cable Co's.

NOT!

Posted by: Bill Cara at June 14, 2006 10:26 PM [link]

I have an off the topic question for Bill or anyone. What is your opinion on Dutton Associates ? Is their research reliable ? http://www.jmdutton.com/index.html

Thanks

Posted by: TheAdonis at June 14, 2006 10:40 PM [link]

Long some gold stocks 563.

Posted by: FirstConsul at June 14, 2006 11:06 PM [link]

TheAdonis,
Companies *pay* jmdutton for research coverage. That should be enough to make you suspicious.

Posted by: josh at June 15, 2006 12:08 AM [link]

Many years ago John Rutledge made one of my favorite quotes "If you assume politicians are liars and thieves you do your best forecasting." The same could be safely said about wall street analysts and investment brokers.

Posted by: bbl at June 15, 2006 2:55 AM [link]

Bill-

The most telling part is the "we got gold" portion of Kudlow's comment. The washout had all the earmarks of a Fed attack and I believe Kudlow does have the ear of some players over there.

HK did its best to stabilize gold overnight, taking it up to the 575 level after having hit a bunch of stops the night before. The miners performed well yesterday and only gave up their ground in sympathy to the general markets. Now we need to hold this area for a few days and build a base. A nice quiet day in the 570-580 range would be helpful.

Long: GLD

Posted by: MarkM at June 15, 2006 5:48 AM [link]

Bill-

In looking at the charts, gold may now get support here from the actions of $USD and $WTIC. The former looks like it has put in a cycle top, the latter a trade-range bottom (68-72.50). Charts are below:

http://stockcharts.com/h-sc/ui?s=$wtic&p=D&b=5&g=0&id=p94239341509

http://stockcharts.com/h-sc/ui?s=$USD&p=D&b=5&g=0&id=p94239341509&a=78880988&listNum=2

Posted by: MarkM at June 15, 2006 6:22 AM [link]

Lots of people now calling for a ST bottom here. Larry Berman (CIBC World Markets) moved clients into gold and energy Monday. Ritholtz (I know!) moving clients into the market yesterday. All of these on technical indicators of market bottoms, sentiment, etc.

Very interesting that the banks didn't participate yesterday. Can't rally significantly w/o the financials in my opinion.

Long: GLD

Posted by: MarkM at June 15, 2006 7:22 AM [link]

TheAdonis, and others,

Please don't use these pages to ask about services like Dutton and TradeStation. The readers here don't care a whit about the financial products and services you may or may not have an interest in. If you really do have such an interest, please send me mail directly. I would be pleased to answer.

We are here to have discussions about the securities of senior companies (stocks, bonds and derivatives), and the drivers of those prices.

If there is a homogenous industry group, like the precious metals or homebuilders etc, then I will discuss some of the smaller companies, but only in terms of the bigger picture.

Thank you.

Posted by: Bill Cara at June 15, 2006 8:04 AM [link]