Well, that didn’t take long. I mean this price action is almost making me look sage like, except I’m not. I’m just not stupid, that’s all….As I have used the term over and over, the half life of bailouts is getting shorter and shorter…It won’t be long until we are through the lows and hit my $6.22(down 30% from high print) target. For those that are so foolish to buy into these pathetic attempts to suck you in to believing all is well, please STOP. You are only going to lose money. And like today’s mysterious 150 basis point rally in the last 15 minutes on a day of virtually no volume, I would suggest you take advantage of the nice frothy positive open tomorrow morning that will be more than likely be engineered by the insanely desperate central bankers, who once again are caught on the short side trying to put downward pressure on Gold and silver and will need to ramp stocks to give them some cover ahead of the German Courts ruling on the constitutionality of the bailout programs put in place by Merkels coalition. While nothing is a certainty, it seems highly unlikely the US equity markets can maintain the 5-6% out performance they have enjoyed over German and European markets the past two days and teh 20% out peformance year to date. But I am told a few minutes ago that the sell side is telling accounts that since SPX held 1155 that we should be encouraged. SO if you want to take their advice read the following and be my guest.
In fact, here is some sage-like advice from another one of the leading parasites over at Citigroup, Mr. Tobias Levkovich, who earlier today SAYS MARKET INDICATES BUY STOCKS, SELL GOLD…For those of you who are unaware, Tobias is Citigroup’s Chief Equity Strategist and if anyone wanted a shining example of why Citi stock is $2.70 a share (adjusting for that ridiculous 10 for 1 reverse split), here you have it. Another bankrupt institution supported by taxpayers whose Chief Cheerleader makes far too much money for just saying buy stocks every day of his career.
Here is how things work. When a bank says they don’t need capital, it means they need capital. When they repeatedly go on record in the public saying, we don’t need capital, and take some you know they need a lot more. When they agree to take money from someone whose only worth is the credibility of his name which is now tainted like everything else related to the financial system, it means not only do they need $5bn but they will likely need a multiple more. This is the cheapest capital they will get because its a favor courtesy of everyone that could care less about you and I. BAC stock price zoomed up to $8.89 on this news. I can promise you whomever bought those shares will regret every dollar spent with 1 month as they will lock in at least a 25-30% loss in that time.
SO that’s my prediction. By September 25 BAC stock will be back to $6.22. Warren Buffett will have lost all credibility and Obama and his centrally planning team of thugs will be back in a corner trying to come up with every last piece of ammo to save this market and unfortunately they will have nothing.