Ricks Picks

AAPL/AMZN ‘Tag Team’ Designed to Fool the Rubes

EST

The stock market’s masters have been working AMZN and AAPL like a tag team, pressing one into service when the other lacks the energy to goad stocks higher. That surely describes the current dynamic. DaBoyz short-squeezed AAPL for a third straight day, more than offsetting the drubbing AMZN is getting tonight on a downbeat earnings report that has sent the stock plummeting $100 after-hours. The selloff is a brazen shakedown, to judge from the news that caused it. Here, supposedly, is what is ailing Amazon: “Concerns include slowing unit and NA Online growth, slowing subscription/advertising segment growth, gross margin miss, and guidance (likely reflects India issues, lower 3P fees).” What a load of crap! As bearish as my outlook for the stock market is, and has been, this is the kind of ginned-up news that would make me want to buy the stock, not dump it. (In fact, and for your information, AMZN became a “mechanical” buy, in Hidden Pivot parlance, this evening at 1646.15, stop 1591.37.)

When Bears Throw in the Towel

The way DaBoyz are able to work the two stocks reminds me of how slot-machine “mechanics” in the old days used to “rhythm” two machines simultaneously to extract the maximum payoff from the house. That’s what’s going on with this bear rally, as leadership passes constantly between AMZN, AAPL and a few other institutional workhorses. No one can predict exactly how high the rally will go, but we already know its purpose: to fool the riff-raff into thinking it’s capable of achieving new all-time highs. The Dow and S&Ps aren’t quite there yet, but they will be soon if the wiseguys can get AMZN and AAPL to rise simultaneously. Bulls aren’t the only ones Mr. Market is intent on fooling: Inveterate skeptics like your editor fall in a special category of his for whom no degree of punishment is too nasty or humiliating. We see it as our job to warn off the rubes as the rally grows more appealing. At some point, however, even we could be forced to throw in the towel as a patently phony rally morphs into the real McCoy. This seems highly unlikely at the moment, given the economic headwinds from China and Europe, and the steady implosion of the U.S. housing and auto sectors. Even so, we’ll be looking over our shoulder as the AMZN/AAPL tag team gets revved up to-the-max in the weeks ahead.

Comments on this entry are closed.

none February 1, 2019, 2:15 pm

‘anti-quant’..the time of ‘quant’ is ending and what an end it will be.

They are the ‘short’ of a life time as the forest has become so thick with them no more trees can grow.

Volume once a key factor is no longer a key factor, the ‘4th market’ (an unseen exchange market) has taken such facts and figures away. Such large execution take place each second so the dollar exchange has overlap corruption.

Market breadth figures such as the A/D Line are no longer and have little use because they are so many ‘other issues non related to equities’ that are included in the figures each day. Major turning points have little clue in way of new and upcoming trends to take place.

Markets are not broken, American government is not broken only the way one observe each. Those that suggest markets become ‘inefficient’ at times are they themselves such inefficient at the time of suggesting it.

American Government runs as markets do, our Founding Fathers created a government that is ever lasting (though it not seen this way most times LOL) because of what is call ‘checks and balances’, a term used in markets too.

Government (Only American Government) works in such a way that it is ‘never’ to agree on anything, that each of the 3 branches fight and most times to a very end, that each base of thought of those in charge never clearly have a majority of ‘anything’, that no such event will ever and should not take place. Madison did his homework on pass empires and governments and the goal as today is never to allow a majority to flow at ease. That no one person or group become an ‘absolute’, a Nazis or Communist doesn’t have a chance in American Government because we allow them to speak and in doing so we see the true content of what they are.

Fighting and disagreements as in the market exchanges go hand and hand with American Government and American Capitalism. Simply, this is the most honest process to curve the human appetite towards a complete government takeover, our way the American Government way is always to be on edge and ‘at the edge of failure’. Capital Markets are the same.

The song and dance that America will be taken over from within, such as other empires in history has always been complete nonsense, as other governments fill their halls with ‘no checks and balances’ and its appetite towards ‘getting along with one another’ has and is the reason towards their ending. American Government never gets along with anyone or anything, nothing ever runs smoothly and it should not.

America and Americans seek ‘fiction’, ‘in fighting’, disagreement’ and yes ‘corruption’ and in doing so, it receive ‘freedom’ that is everlasting. Sounds familiar? Just like capitalism and the markets that trade in a capitalistic manner.

America as markets have hidden secrets and they are clearly right out in the open, the best kept secret’s are always such. America’s only Achilles Heal is an invading army something no one today can ever image. In WW2 the Japanese Empire were and still are afraid of Americans, as the story of history goes no one can invade America because behind each blade of grass is man, women and child with weapon in hand to kill its enemy.

Volume is now conceive as such a weapon in the markets, it today is hiding behind each blade of grass and in the hands of each man, women and child to kill its enemy.

The volume figures and many technical facts and figures we see each day no longer have the ability to see their true meaning, the forest is so thick that the growth of trees can no longer take place.

A market revolution as in American Government is taking place, it will rape and burn the growth above and beneath of what we have, towards and like long days of the past changing government and market eras. Where ‘abundance was seen as a necessity’ and then became a ‘liability’.

Price itself in the end, will become the only valued reference point when the heat subsides after the burn.

Markets and American Government are always efficient they never break, its only those that suggest such at times that have broken.

Have a great weekend Rick.

The ‘anti-quant’ Rick is a great ‘Big Short’ today and in fact we may see them or that go under- ground for decades like the 1940′ to the 1960’s time period way back when.

THOMAS WHITE January 31, 2019, 11:38 pm

Rick- You’ve been a consistent proponent of distribution… Isn’t possible to estimate roughly how many shares (the volume) of whatever DaBoyz are seeking to unload before shorting the market down big time? And, wouldn’t such an estimate help you estimate roughly when the bear rally will come to an end?

&&&&&&&

I’m the anti-quant, Thomas, and I’d much rather rely on Hidden Pivot levels to tell me when distribution is about to sputter out. That said, one of the best ways to see distribution in action is with Market Profile charts. Stochastic divergences at tops and bottoms are another useful technical tool for this. RA



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