The Market Is Broken – Today Was A Disaster For The Bulls

We all woke this morning to the money honeys on financial propaganda television, all of whom couldn’t hide their ear-to-ear toothy grin over the Dow futures being up over 600 points.  But after a big 350 point opening gap up, and after trending largely sideways for most of the trading day, the markets plunged to close well below yesterday’s closing levels:

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Grins turned to frowns and confusion by the close of trading. What is even more stunning is the way the indices were bouncing around in the last 10 minutes of trading. The Dow went from down over 100 to almost green and then back down to its close at -204. It was shocking to watch, to say the least. I’ve never witnessed trading like this in over 30 years of active involvement in the financial markets. The Dow and the S&P 500 were bouncing around like an LSD-laced kangaroo on a pogo-stick. The NAZ was up over 14 points and in less than it minute it was down 10. I closed down 22, or .6% on the day.

And my favorite sector, the homebuilders, were massacred. The Dow Jones Home Construction had jumped up a couple points on the over-hyped new home sales report, only to close down 23.88 points, or 4.1%. In just four trading days the DJUSHB is down 12.4%.  This is a huge move for any market sector.

Part of the culprit was Toll Brothers, which reported earnings today. It missed its income estimate by a country mile and was well short on revenues as well.  The party in the homebuilder sector is drying up.

I have several homebuilder reports that I will be updating soon.  When I update them I will also be raising the price.  Two of them, the first two on the list, will soon be racing to see which one will break $10 first.   You can access them here:  HOMEBUILDER REPORTS.

Anyone who buys them now will receive the updates, as per my policy.  The homebuilder sector is, outside of venture-cap tech, the most overvalued sector of the market.  There is a lot of money to be made on the downside.

FYI, Toll Brothers is one of the homebuilder stocks which Jim Cramer has been having sexual relations with himself over:

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5 thoughts on “The Market Is Broken – Today Was A Disaster For The Bulls

  1. I bet Toll Brothers are much more “sexual arousing” than the fat old saggy cow Bartiromo.
    If everything works out fine with Toll Broters maybee Jim should change his last name to “Creamer”

  2. The Algo’s have grown bold now that they know they can throw there weight around w/ great effect. The PPT has met an opponent w/ swagger.

    I absolutely love the pics of that annoying b_tch Bartoromo go from gins and giggles to sad panda.

  3. Don’t worry about Maria Bartiromo. She was once a hot chick. Now she’s only a fat old biyatch. Doesn’t matter whether she smiles or not. 🙂

  4. Remember about 15 years ago there was talk about keeping the markets open 24/5?
    The markets such as NYSE.
    They cannot do that because then how could they manage the markets using futures overnight. “Someone” has been buying SPX futures the last 2 nights to “levitate” the markets.

    They cannot let the little guy trade overnight without using futures. and the little guy means millionaires with only a few million.

    Its obviously gone way beyond metals.

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