I had to laugh yesterday at the 'breaking news' regarding Bank America that got the CNBC anchors all lathered up. The news that the bank CEO Ken Lewis and some other yes puppet executives went out and purchased just north of 500,000 shares in the $6 neighbourhood which amounts to the staggering dollar amount of $3 million. Now if this is not the biggest show of confidence I know not what is. Lets just call this what it is, token buying and be done with it.
I will not that one Dylan Ratigan was not impressed with the purchase of stock nor the rally yesterday. Readers know I heaped praise upon Mr. Ratigan for "finally getting it" recently. It really is amazing how you really do not need an advanced degree to figure out you are getting swindled and have been used as a pawn in the big fraud. Congrats again to Mr. Ratigan who I encourage to call these thieves out.
We also get news Jamie Dimon bought 500,00 shares of JP Morgan around the $23 mark totalling $11.2 million. That seems, on the surface, to be a more significant amount but remember that insider purchases are always best viewed as a function of ones net worth. When one has a quarter or a third of ones stake tied up it carries more weight, at least with this speculator.
We got IBM's numbers yesterday and in the view of the market were quite good. I caught a piece indicating that about 2/3's of the Dow's advance yesterday was courtesy of IBM. My gut instinct tells me it was shorts running for cover alongside zombie institutional fund managers buying the politically correct. Yes, most probably the manager of that fund in your IRA or 401k account. Sorry, but that's the way it is.
As I am finishing this piece Microsoft has released it's numbers earlier than anticipated and they are not pretty. Again, another zombie manager favourite, along with the CNBC pundit crowd. You know you could get recommendations like these from your 7 yr old nephew or niece rather than paying outlandish fees to the Hampton crowd, that is, if they have not skipped town and are AWAL. I hope you are not still listening to the shills on CNBC calling for a 2nd half recovery this year for if so you may want to skip the MSFT report. Just a thought.
