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Friday, September 25, 2009


Ok most readers know to completely ignore these kind of stories or "news". They are just fodder and "noise" and the media's attempt at explaining why a stock dropped 17% in a matter of hours.

Its still criminal though and every once in a while I like to point out what a crock of crap the media and their "news" is. Sometimes I read a story to get a laugh and sometimes the absurdity of the Great Ponzi is insane when you think about it deeper.

Example quote:

"Even more of a concern was the outlook for the crucial November period, in which average selling prices, or ASPs, are expected to be weaker due to the late launch of new devices during the quarter."

HUH???? What a load of made-up gibberish. Its criminal! I had to laugh thinking about how the person who made this load of crap up was probably laughing themselves as they wrote it. Is it true? How the freak would I know? I do know this: Its all media gibberish.

The media saw a big huge price drop so they had to invent some explanatory reason for the ever-gullible public.

if you as a trader BELIEVE ANY OF THIS BS then you should't be trading.

RIM dropped because they were technically due to drop (and they likely had finished an EW pattern at a market top). RIM is a favorite beat stick of tech.

Another quote:

"Revenue is expected to be between $3.6 billion to $3.85 billion. Analysts had been expecting $3.92 billion for the period."

My gosh thats a lot of coin. RIM isn't going bankrupt!

But I had a strong suspcion RIM was finished for now. I posted a chart the day it topped saying so

Coupled with a likely P2 top (or close to one) its a toxic mix for a company to announce earnings at the peak. It doesn't matter what they said, or what they reported it would have dropped anyway.

Think about it. Here is a further extrapolation of the "reason" RIM dropped so hard:

"The most worrisome part of the forecast, however, was the company's ASP outlook. The company expects average selling prices of $340 for the November quarter, while many analysts were expecting ASPs in the range of $340 to $350"


WTF was THAT gibberish>>>>???


The Cramers of the world need be in jail including the print media who make up stuff like that.

We know what a racket the whole thing is but the astonishing thing to me is how much the average Joe stills believes that "if its printed, it must be true" particularly when it comes to markets.

And watch, go read the RIM Yahoo board where they actually debate the merit of "ASP" pricing or whatever.


AMAZON who is at 60 P/E and earned a measly .32 cents last quarter (RIM earned a $1 or more) is still floating above $90. Yet my crappy October puts (my first option trades - I got lazy in their charts!) are like toxic poison. I am a loser because of bad timing although I think I will at least come out even.

The moral of the story: Markets move first then the media invents the "news" to explain why.

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