Google and Amazon shares are getting squeezed so hard in after-hours trading Thursday night that they are all but certain to exert upward pressure on the broad averages on Friday. Both stocks, juiced by they usual earnings “surprise,” have slightly exceeded the highest targets I could have projected for either of them. Regardless of whether this effusion puts a blowoff top on the market will be of scant comfort to shorts, few of whom are likely to survive the onslaught.
How Blowoff Tops Are Made
- October 23, 2015, 9:53 am
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October 23, 2015, 1:00 am
17 cents a share at a share price over 600. How in the world are “investors” ever going to get their money back from a glorified penny stock such as this one. It is obviously an old maids card waiting to get passed off to a greater sucker since the company will never have enough earnings to pay back someone at that price level.
Imagine if I offered someone a share to a company for 600 dollars that only earns 17 cents on a great quarter! I would be arrested for fraud. 🙂
Wayne,
This is all the natural consequence of the end of market set interest rates and a Fed that backstops failure by buying worthless MBS paper at par.
Now, there is no Fear to offset the Greed.
The Players know they can’t lose, so the sky is their limit.
This is sort of like the slaughter of WWI that went on and on long after both sides spent all the gold they had and bankruptcy should have ended it after six months.
The guys running this madhouse are not going to just get religion and quit, they will go on and on, and laugh at the casualty lists their policies create.
Just like the loons in charge in WWI.
Make what money you can while it lasts, that is all you can do about it.