The picture carries no notes as it should be self explanatory. This is not a chart of Nortel or Qualcomm or Cisco. Nor is it a chart of Foundry Networks or Sweaters/hats/shoes/underwear or giggles.com back from the heyday of the internet bubble. No dear reader it is
Green Mountain Coffee Roasters ticker GMCR.
How shall I say....... gone parabolic?
Punting this short seems like an interesting trade with this one with a stop just above the recent highs. I'm gonna sleep on it but if the history I referenced prior is any guide the ride down should be interesting. Eyeballing it $60 seems like a number of some significance.
Before I go, is it me or does anyone else wish Bob Pisani had a little shame. Like a high school cheerleader on a Friday night he makes the money honey look tame and almost subdued anymore.
Me thinks Cool Breeze Pisani was getting some serious grief from friends and family who actually go to him for market advice (hard to believe huh) and were left severely under water as the market tanked into March.
So this rally is his prayers answered as he pounds the table constantly reminding all of the new highs for the year in the major indices. Forgot how much they are down just focus on the new yearly, which is 6 months for those counting, high.
And to think, as a young fella I made fun of Louis Ruykeyser for his monotone and, what I thought, lacklustre presentation style. Boy do I realise now what a absolute PROFESSIONAL journalist he truly was. Take a cue Bob and stop selling the market to everyone, it's not your job, leave that to your advertisers.
Speaking of which, I caught a commercial the other day on one of the bought and paid for mainstream financial media outlets, CNBC I think but cannot be sure. Regardless, it was a Lind Waldock commercial in which 2 cats at the gym talk about trading, commodities in particular. The line that caught my ear, was where one dude (customer of Lind Waldock) who was recommending the firm to his pal, said this beauty of a line "when I can't sleep I trade S&P futures". Gotta love that. Super idea. Now you know what chum in the water looks like.
I don't know is you had a chance to catch James Grant's appearance on CNBC yesterday morning. He is the author and proprietor of the extraordinarily well regarded publication the Interest Rate Observer. He had this to say regarding the Federal Reserve;
"The Federal Reserve's balance sheet is so out of whack that the central bank would be shut down if subjected to a conventional audit. "
"With $45 billion in capital and $2.1 trillion in assets, the central bank would not withstand the scrutiny normally afforded other institutions."
"If the Fed examiners were set upon the Fed's own documents—unlabeled documents—to pass judgment on the Fed's capacity to survive the difficulties it faces in credit, it would shut this institution down,"
"The Fed is undercapitalized in a way that Citicorp is undercapitalized."
But what would he know right? What, when we have Cramer running around yelling buy, buy, buy. The fact that many out there are more familiar with Cramer than an intellect like James Grant should tell us volumes about how and why we are in the mess we are in. Lovely just lovely.
