This Incredibly Stupid Market

 | Jul 22, 2014 | 10:52 AM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:










Here we go again: Higher interest rates on U.S. Treasuries equal higher bank stocks. Higher bank stocks means a better tone to the market. Higher rates means cyclicals doing better.

Of course, presuming all of these kinds of relationships off of a 6-basis-point move in the 10-year bond is just ridiculous. You can't judge anything, really, by a few ticks in the bond market.

Yet that's exactly what is happening.

This remains the most stupid of markets. You get stocks such as United Technologies (UTX) and Travelers (TRV) going down on misses. They will settle in and then go high, just as Johnson & Johnson (JNJ) shares did when that company reported.

You have stocks such as McDonald's (MCD) and Coca-Cola (KO) getting hammered. But soon we will hear about restructurings, and the buyers will come back.

You have the banks ramping, and yet if interest rates go back down, those stocks will give up their moves.

It's all just random to that day and nothing else.

I say, take a breather. Examine what's down -- not what's up. Then make a decision as to whether you can take advantage of the big-cap bargains, knowing that they might be down again tomorrow, but that they will most likely stage a comeback a week from now. That's been the pattern. I don't think it will change. Forgiveness rules.

Columnist Conversations

we'll take this nice winner off the table SOLD ADSK AUG 105 CALL AT 9 (in at 4.45)
COST is beginning to firm up near the $150.00 area. The stock bottomed here at last December's lows before exp...
We like this move today on good turnover and strong option flow. BOUGHT FCX OCT 15 CALL AT 1.04
View Chart »  View in New Window » So far we are holding key support in this one.  Target...



News Breaks

Powered by


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.