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History, Sentiment, and Technicals Are All Predicting a Market Bounce: Says, Sam Stovall
"If there's nothing wrong with the company wouldn't you rather buy your own shares back at $33 than $44? You get far more of them for the same amount of money, right?
Who doesn't love a sale, provided, that is, nothing else is going wrong that might require you to have the money available for other purposes."
The Facebook situation is a debacle of the highest order - I mean, you now have reports of people who thought they cancelled their order on Friday and found out yesterday that their order was filled - and while one can think what they like about fundamentals, the company, whatever - it was a hugely hyped situation and every time it was mentioned it was hoped for as a "way to get retail back in." (Oddly, there didn't seem to be any technical problems with the sell orders.) I mean, every five seconds CNBC was talking about how retail would be excited and this would be a great thing for retail, blah blah blah.
So, those who did come back in either got creamed or apparently found they had shares from orders they thought they'd cancelled, there's bad press and those who didn't get in see negative headlines about how Wall Street handled the situation. Again, the company could been enormously overvalued and whatever, but this was designed as a push for retail involvement and in that regard, it's a PR disaster.
And then there's Europe.
I think people should stay invested, there are stories and themes that are working and, quite honestly, my bet remains that issues will be papered over by printing and easy monetary policy, both here and elsewhere.
Comments
http://www.zerohedge.com/news/did-fed-just-give-us-very-big-clue-just-how-big-jpms-cio-loss-may-be
On the same topic, this is a fair point regarding JPM and repurchases:
http://market-ticker.org/akcs-www?post=206256
"If there's nothing wrong with the company wouldn't you rather buy your own shares back at $33 than $44? You get far more of them for the same amount of money, right?
Who doesn't love a sale, provided, that is, nothing else is going wrong that might require you to have the money available for other purposes."
The Facebook situation is a debacle of the highest order - I mean, you now have reports of people who thought they cancelled their order on Friday and found out yesterday that their order was filled - and while one can think what they like about fundamentals, the company, whatever - it was a hugely hyped situation and every time it was mentioned it was hoped for as a "way to get retail back in." (Oddly, there didn't seem to be any technical problems with the sell orders.) I mean, every five seconds CNBC was talking about how retail would be excited and this would be a great thing for retail, blah blah blah.
So, those who did come back in either got creamed or apparently found they had shares from orders they thought they'd cancelled, there's bad press and those who didn't get in see negative headlines about how Wall Street handled the situation. Again, the company could been enormously overvalued and whatever, but this was designed as a push for retail involvement and in that regard, it's a PR disaster.
And then there's Europe.
I think people should stay invested, there are stories and themes that are working and, quite honestly, my bet remains that issues will be papered over by printing and easy monetary policy, both here and elsewhere.
Edited to add: FB now $31.50. Insane.