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ing but educating teachers last night last night i told you not to overthink the run in the coved stocks sometimes the market rallies it makes perfect sense but then there are days like today when i can't take how stupidly bullish this market can be the dow gaining 164 points has to be advancing 0.36 percent nasa climbing 0.35 now you often hear people complain that the whole thing is being manipulated do you ever look at my twitter file it's like the manipulation company uh and why is it but it wasn't it's a desperate federal reserve it's a scare j pal it's president trump wanting to win the election no no fed's just doing his job but if the white house really wanted to juice the stock market going to the election well don't you think they were able to cut a deal with the democrats next round of stimulus see there's a much more similar explanation for a lot of what happened underneath today i call it clueless buying i always say you should never underestimate the wall street promotion machine but there's a corollary to that never underestimate the power of enthusiastic buyers who do not know what they're doing they know nothing they know nothing they know nothing some people accuse me of taking the jimmy chill thing too far they say i'm not willing to call people out for being morons that i'm more likely to put retiring clorox ceo ben odor on the wall of fame than i am to put ford's departing ceo sorry jim hackett on the wall of shame they think i've become some sort of dalai lama disciple four agreements gaia maybe a wall street conscientious objector thirteen years ago yesterday i screamed that the fed knew nothing they know nothing as we were heading to the great recession what happened to that kramer well i don't know what to tell you the fed was totally clueless in 2007 but in 2020 they've been ahead of the curve every step of the way jay powell he may not be an epidemiologist though he often plays one at the meetings where other fed governors want to engage in wishful thinking about how we're almost out of the coveted woods yeah i mean at least he knows he knew ahead of time gotta hand it to him as opposed to the other guys last time 2007 how about our elected leaders look it's absolutely insane that congress hasn't passed another stimulus package that they let the expanded jobless benefits lapse that there appears to be no strategy or no plan but that's politics in america and at a certain point yelling about this stuff is like bashing your head against the wall no thank you i like my head so today i'm reserving my wrath for the no nothing buyers who seem to have taken a permanent intellectual summer vacation i can't influence the fed and i can't i i don't have a lot of heft in congress i know you think i do but maybe just maybe i can berate some ignorant traders into managing their money more responsibly and that's tonight's object lesson so i want to start sorrento therapeutics you might have seen might have seen them on closing about strength or therapeutics is a company i've championed repeatedly since june when the stock was trading at four dollars imagine told us how they were working on both a treatment for covid and a prophylactic which i thought was something else before i started getting involved with this cova thing i recommended it again several weeks ago when the stock was eight bucks and the company told us they were making a ton of progress i told you sorrento had many shots on goal you might have thought i was talking about some city in italy where enrico caruso used to hang out no i said many shots on goal that it was exactly the kind of coveted drug stock that you should be speculating on well i i've been skeptical myself though i called mike terrell our terrific biotech expert to be sure i wasn't off track now i listened to dr henry g the chairman and ceo who told a terrific story sure enough last wednesday now not tomorrow because that wouldn't be last that'd be tomorrow last wednesday sorrento announced it's licensing a rapid on-site covet detection test using the saliva from columbia university good school that gives you a result in 30 minutes or less their test doesn't need to be shipped to a reference lab which is by the way mr president is the big bottleneck in the country you're letting them get away with it and also be very accurate sorrento's marketing it under the name covatrace and you can potentially take the test at home one day the whole thing's in a single tube oh and no swab up your nose you know when they jammed up your nose you may not realize first they tell you it's going to be 10 seconds but it's really 12 and it's really one of those one mississippi two mississippi jobs ah anyway when i saw the news i told my wife about it lisa is her name and we're finally going to get out of this mess because sorrento figured it out then she told me she always wanted to go to sorrento but that was apropos absolutely nothing no i said i'm talking about sorrento therapeutics but the stock had ate in shenandoah of course what she said she goes we couldn't go to sorrento anyway we're not allowed to go to italy but she didn't get it see sorrento was at eight dollars and change it did nothing on the on the release nothing no reaction so either the market was being very stupid or something well let's say someone knew something maybe sorrento was being too promotional modern alike maybe there was a problem we didn't know about turns out the market was just stupid because today on the exact same news nothing has happened nothing has happened on the exact same news from last wednesday sorrento rallied 31 to just under 13.
the stock market's supposed to be efficient but somehow it took wall street six days to process this news if anyone ever says to you that the market's pricing information correctly and instantly you are now fee you are now free to call those people mountbox and naves especially if they're professors at colleges or how about this on july 23rd we learned that intel yeah intel was having problems manufacturing their new seven nanometer transistor which is supposed to be the holy grail for everyone involved in tech hardware the server the server kings anyone who follows the industry was shocked that this once great chip micro was actually struggling even as advanced micro devices the perennial underdog is ready to go with its seven seven nanometers thanks to its partnership with taiwan semiconductor intel's pain is amd's game they could take a massive amount of market share i thought this story was huge and i pushed amd aggressively on you i mean just as hard as i could argument at the quarter would also be good in a matter of days the stock falls from 59 to 77 so far so good but today today jeffries a research firm puts out a note it's titled advanced micro devices expect share gains to accelerate end quote now there's nothing new in this piece nothing that i haven't told you they're simply reiterating what was said back on july 23rd i didn't think it was even worth mentioning squawk on the street wrong amd rallied 9.5 today on that non-news the same darn info i gave you when i checked around all i heard was that the stock was being re-rated wall street speak for a boy were we wrong about this hundred billion dollar business let's go buy some now i love amd you know that oh come on i wear all my sleeves uh but you could have easily gotten in into this one in the mid 60s on the same news a week and a half ago frankly i've been recommending this stock since it was trading at five dollars when ceo lisa sue schooled me about how our company had a road map that would allow them to beat intel and it sure did finally maybe the dumbest action of the year is this run in bp today yeah the old british petroleum i think my condo back in february bp raised its dividend by 2.4 raised okay you hear me february raised making the case that the world of oil was getting better and better and they wanted to return money to shareholders because things were so rosy so what happened when they boosted that dividend the stock immediately flew up almost five percent pre-pandemic today the company announces a record loss pronounces his prospects incredibly grim offers the pivot to lower carbon uh it's an oil company and cuts the dividend half not only are they telling you business is terrible uh bp is trying to distance itself from crude while preserving cash but maybe that dividend hike was a mistake all right so how much was that stock down i mean wow what a what a parade of horrors are you kidding me vp stock rallied 7.5 that's a bigger gain than when they they got in february when they told you business was great and they raised the dividend stupid is as stupid does and i also didn't know it turns out the big buyer today was someone by the name of nathan johnson the bottom line sometimes the stock market roars it makes perfect sense but there's also plenty of stupidity especially during earnings season when there's so much news that it's hard to keep track of what's going on so the next time you see something totally crazy it might not well it's not going to be the fed it might not be the present it may just be standard garden variety idioc
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