The following market commentary is a reflection of my age, as the younger generation will never get this reference unless they’ve watched a lot of old movies, or worse, been caught in a foreign country at an unfortunate time.
What am I referring to?
In the late stages or end of a bull market, the powers that be tend to pass out blindfolds and cigarettes.
Each of the once superstar favorite equities are offered one or both then taken out and proverbially shot by the bear’s firing squad. In some cases the blindfold and smoke is not offered until the next day when the surviving bulls are squealing in their own market blood and margin calls.
This past two weeks has seen a sudden surge in executions, and no matter what the super bulls tell you on the Bubblevisions, it’s a lot worse under the surface of not just the markets, but the economy, than they are letting on.
For tonight’s discussion, let’s focus on the stock market and some of the stupidity, excesses, and executions of recent weeks.
Stock #1: Bank of the Ozarks aka, Bank Ozark – OZK
In a chart summation, murderized:
The smoke was barely lit when the Citigroup analyst downgraded this stock to a “sell” which is pretty hardcore in this era.
Stock#2: Logistics Properties of the Americas – LPA
So just because this stock made it to the NYSE on less than 20,000 shares traded per day average and they got to ring the bell this week it justifies going from around $6 per share to over $400 today and back?
But it’s not a bubble per the bubblevisions.
Stock#3: Greenwave Technology Solutions – GWAV
I have been watching this stock, much like FFIE, because it has constituted anywhere from 3-9% of the NASDAQ daily volume. What does it do different from the world? Nothing. It’s a scrap metal company forced into a 1:150 reverse stock split to stay listed on the NASDAQ which means shareholders get the raw end of a rusty iron rod where the sun doesn’t shine. Yet speculators and morons played it, just like late stage .com garbage in 1999-2000.
Stock#4: Me Mongo – MDB
I’ve always wanted to post a picture of Alex Karras, the great NFL football player who played Mongo in the artistic masterpiece Blazing Saddles and thanks to MDB cratering this month, now’s my chance.
It’s dead Jim.
And I haven’t even had time to research it and see if it’s worth saving. Just like Alta Vista.
Stock#5: Salesforce.com – CRM
I understand the concept, I do not understand the stock price. I just hoped the shareholders requested a Camel unfiltered before the execution.
Stock#6: Dell Computer – DELL
Ooof.
While PC sales in the replacement cycle have been strong, the reality was admitted during the earnings call when a reporter forced Dell to admit they don’t have a clue what “AI” will do for their products.
Ooof.
Inhale on that Dunhill baby, before the bullet hits.
Gang, look for more firing squads next week as the market is starting to punish anyone who is not named “Nvidia” and that’s why the investing world will get very interesting.
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[…] Way, way back in February of this year, I wrote an article titled “Cisvidia” where I highlighted what Eiffel Tower market tops look like. Just like the 1999-2000 era of the .com bust, the market leaders of this era have been hitting the stratosphere then popping and falling as they are given blindfolds, cigarettes, then executed. […]