Ignore the Smell of Blood at Your Peril

What kind of batter crowds the plate after a pitcher has aimed a fastball at his head?  “Batters” have been doing it routinely on Wall Street lately — most recently yesterday, when they held the broad averages buoyant while Google shares were getting pasted for 80 points.  During this single-stock onslaught, the Dow Industrials were never down more than 50 points and closed off only slightly with GOOG still $53 in the hole. This wasn’t the first time bulls have leaned into the plate while “dusters” whizzed past their ears.  A day earlier, they pushed the blue chip average to a small gain while IBM was getting savaged on earnings that — heaven forbid! — only somewhat exceeded analysts’ expectations.  Big Blue got schmeissed again yesterday along with Google, but the body blows that sent two corporate giants to the mat evidently weren’t enough to unsettle investors.

Invincible Buyers?

If bulls have been acting like they’re invincible lately, perhaps it’s because they appear to have shrugged off Apple’s nasty plunge in the last month. At its recent lows near $624, the stock had shed 11% of its value – a very big hit for portfolio managers, since the company is the world’s largest by capitalization.  But so what? That seems(…)
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© Rick Ackerman and www.rickackerman.com, 2012. |
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