The market opened this Tuesday morning with another jump into the green, much like yesterday. Overall, I get the strong impression it wants to go up, much like it has the last five years. Today, though, geopolitics and earnings might just get the job done solidly for the bulls.
· Late on Monday, Russia made assurances it would not invade Ukraine. Russian troops have reportedly left the Ukrainian border.
· U.S. stocks opened higher on Tuesday, lifted by a round of positive earnings reports, including from Dow component Merck & Co.
If true, the Russian military has evacuated Ukraine’s’ eastern border, then one could surmise economics trumped politics, which, in today’s economically connected world, makes sense. It is a reality many bulls have been touting in this most current geopolitical dance, as well as many others in recent view. So, why then would Jeff Greenblatt make the statement below?
· The bottom line is that bulls are very complacent, they don’t understand the geopolitical situation very well…
I agree with the notion the bulls have been complacent, but the idea that they do not understand geopolitics is, well, funny. On this geopolitical round, score a big one for the bulls …
Fuel-cell cars are coming, no doubt, and there are issues to overcome, such as building a fueling infrastructure, but when a celebrity analyst flat out states the whole concept is a failure, well, one has to wonder about his or her underlying motivation or one has to wonder about the credibility of said analyst.
· Analyst Trip Chowdhry at Global Equities Research dismissed fuel cells as a viable fuel source for automobiles. “Fuel cell cars are complete failure and a nonevent,” he said. “Fuel cell powered car lacks in power density, hence a typical fuel cell powered car will go 0 – 60 miles per hour in 11 seconds, which is much slower than Tesla Model S, which goes 0 – 60 in 5.4 seconds,” Chowdhry said in his report. He test drove a fuel cell car from Honda.
The problem with the guy above, and others of his ilk, is that market players, too many market players, actually listen to him and them. After Chowdhry’s report came out, BLDP, PLUG, and FCEL all tanked. Okay, so I have some sour grapes about this because I play these stocks, but, nevertheless, the problem still remains – too many market players listen to these analysts, who, in fact, make outlandish and bold statements that are often so wrong it is laughable. Check this out from Mr. Chowdhry.
FORTUNE — “Innovation at Apple is over,” wrote Trip Chowdhry on Oct. 23, the day Apple introduced what would soon become the world’s best-selling tablet computer. “The best is over for Apple. iPad mini is playing catch up to Google Android, probably will have a mediocre customer adoption.”
Oops! Okay, so it is what it is, and I wish it were not what it is, but my point is the breathless media seeks these people out because they are willing to make fools of themselves. As analysts, they often leave something to be desired, to put it kindly.
I know I can be repetitive about some market related things, but the idea one should not listen to celebrity analysts is an important one to repeat, especially since many readers on TraderPlanet are here because they are new to trading and want to learn about trading. These folks need to hear this oft-repeated reality – if you want to understand the market, read and study it for yourself. True, there are plenty of excellent analysts out there, and listening to those quality thinkers can make you money, but my guess is these folks are not out there making bold predictions about Apple’s innovation demise or that fuel-cell cars are a failure.
· Getting your news from the papers, rather than just the opinionated talking heads on the financial and news networks, can allow you to reduce the volume of noise every day — and gain perspective for yourself on what is important and what is not.
There is a lot of noise out there, for sure, and it can hurt one’s trading day, but, in the end, the market will settle on what it believes to be true, not what the recent blip a celebrity analyst created when he or she decided to pop off. For me, these moments, although annoying, can be buying opportunities. And so goes my morning – buying on the dip, or, in this case, precipitous drop.
Trade in the day; invest in your life …
