This totally cracked me up today. In a segment called "Stay long: Market Pro" Mike Rubino, CEO of Rubino Financial, duped CNBC and pissed on the bulls parade.
Rubino was supposed to be bullish on the market and in the shorter term he did agree that he was a bull. However, a few seconds later, Rubino changed into his bear costume and began warning about how the Fed has created the "mother of all bubbles" and warned that the DOW might see 2,3,or 4,000 before all was said and done.
The other contributor in the segment(Scott Redler of T3live.com) was visibly irritated by Mike's comments and immediately went on the attack claiming that such dire predictions as DOW 4,000 are "irresponsible" and hurt market confidence.
Take a look below and I will have a retort following the video:
Question for you Scott: Who is the one being "irresponsible" here? Could it possibly be YOU??? Confidence and fundamentals are two totally different things.
Perhaps real confidence might be restored at DOW 4000? TRUE confidence will not be restored until the credit losses that remain hidden in the system are purged. I am not saying DOW 4000 is where we need to go to get there but I wouldn't say it's unreasonable.
Whatever the number is one thing remains clear: The sytem will lack confidence until the balance sheets are transparent and assets are accurately marked to market. No one is going to be confident owning bank stocks when they know that there are trillions of dollars in assets that aren't accurately marked to market.
Scott and the rest of the other bulltards Wall St remain in a state of denial about this critical piece of market fundamentals. They delusionally believe the market can just "grow out of this" despite 17% unemployment and trillion dollar debts.
Anyone that refuses to buy into their thinking is instantaneously demonized and labeled as being "irresponsible". In my eyes Scott is the one being irresponsible because he believes confidence is expressed in only one way: Higher stock prices.
This is total BS. The market lacks confidence because stocks are an absolute horror show fundamentally. The traders trade the tape and they are basically forced to go long thanks to Fed's QE printing press.
IMO, 90% of the pros that are long right now are not confident in how the markets are trading. I know a bunch of them who tell me behind the scenes that this market is a piece of garbage.
However, they are paid to make profits so they trade the trend no matter how ridiculous it is. If the bulls were really "confident" then guys like Scott wouldn't be so quick to attack someone that is bearish on the market.
The Bottom Line
CNBC really looks bad when they turn into a bunch of hacks. Shame on Mark Haines for piling it on after Mike made his bearish call. CNBC needs to look in the mirror when they wonder why their ratings have continually shrunk month after month.
When I look at the markets right now I see a bunch of nervous bulls that are concerned that their miraculous rally might be over.
The commodity trade got pummeled today despite the Fed claiming they are still worried about deflation. GLD got pummeled as gold dropped around $40 a share:
I thankfully sold out of a good chunk of my GLD a few weeks ago. However, I don't think the gold trade is done longer term.
Nonetheless: The inflationists need to mark this day on their calender because the commodities should not have reversed like this on a day where the Fed came out and said they plan on keeping the printing presses on.
I have a feeling the market might start getting infected with a deflation virus in the near term where we see the dollar rise and stocks and commodities fall.
However, it's hard to make a call on stocks when you watch the tape. The HFT's make the tape so choppy day after day as they buy and sell stocks in a matter of seconds. Trng Identify trend changes are almost impossible when I look at this tape.
I was told by an insider that it's gotten so bad on the trading floor that the specialists basically only pay attention during the first and last hours of trading because everything in between is a bunch of quant nonsense that means nothing.
Until next time!