Courtesy of RobotTrader
The cacophony of craziness surrounding the impending implosion of the Euro has become deafening, now rivaling the decibel levels heard inside the New Orleans Superdome. Yet stocks repeatedly shuck off this hysteria and climb higher and higher.
It seems that the “Algo/Igor/Robo” machines have now latched on to a new algorithm:
1) If the Euro crashes, buy consumer discretionary stocks and tech stocks
2) If the housing starts reach record lows, buy homebuilders
3) If banks start giving automatic 30% haircuts on mortgages, buy BAC, WFC, STI, etc.
4) The longer the unemployment rate stays at 10%, buy companies that sell $5,000 entertainment systems and $175 yoga outfits.
Check these out:
Lululemon up 12% on world record volume today:
And don’t forget the acute shortage of high end stereo gear these days..
And it looks like the fundies are already making sure they have overweight allocations in some key “must own” stocks for the quarter end statement print.
Some guys are getting desperate. Trying to “make their year” buying stocks like Carmike Cinemas.
Once again, summer is approaching.
Hamptons season is right around the corner.
At its all about “making the number” for quarter end.
So you have unlimited spending money for fancy cars, booze, and Ukranian escorts.