All is NOT What it Seems in the Land of Bears and Bulls

Ever! Not on Wall Street. Whether you are looking at Level 2 quotes or a Financial statement, a press release, an interview with a CEO on your favorite Financial network, you are being hoodwinked in some shape, form or fashion. No one is transparent about what they are up to on Wall Street. Analysts issue a buy rating at the exact top of the stock's price or a sell at the bottom, there's a reason for it.

Last night I mentioned the unusual options activity in MER, which had the effect of spooking the market. Something was up, but who knew what? Someone did. Take into account the window dressing period is upon us and the usual suspects with the usual motivations appear (see the link to the video in last night's post, all will be clear). So MER sold off this am and then of course, it rallied (again, see the link to the video in last night's post and all will be clear).

Just remember, what you see is what someone wants you to see, not what is there to be seen. If you need convincing, just think about all the transparency issies we've had with the financials companies and how many times they said, "we're pretty much in the clear" before another $10 billion in write-offs the next quarter.

Interesting foot-note, according to Briefing.com (I just love them), MER sold those ABS CDOs for just about $.22 on the dollar, which equates to roughly $6.7 Billion (Biiiilllliiioon-slight Dr. Evil accent), which is $4.4 Billiioooonnn dollars less than the reported carry-value at the end of Q2. Which means what? Well, if B.com didn't tell me, I wouldn't know either, but they did and here's what it means: It's a huge markdown in a short period of time which makes one wonder, out loud or in their cocnut, "Hey, I wonder if they priced those CDO's fairly in the first place when they reported them with earnings?". And THAT MEANS Dun-Dun-Duuuunnnn!!!! "I wonder if other firms in a similar situation might have also done something like this and maybe they too will need to raise more capital-sell more stock when they report in the next few weeks?" Man those guys are smart.

Well, considering how many times they've more or less told us, "the check's in the mail", you know where my money would ultimately be, although the market thus far could seem to care less. Which is how I ended last night's post and how I'll end today's. IT DOESN'T MATTER WHAT THE NEWS IS, IT'S HOW THE MARKET REACTS TO IT. Hope I didn't hurt your ears. Have a great day.