Maybe the holders know nothing? Maybe they are spooked at every turn? Maybe they are all micro guys turned macro? Maybe the research out there is so bad that they make decisions based on faulty information?
How else can we explain these post-market moves on OK earnings?
The first, IBM (IBM), is incredible. I heard endless chatter that the quarter would be missed because the revenue would be weak. At the same time there was a relentless downbeat tone about the chart. THE CHART! Sure enough, sales fell 3%, but the number's $15.10 now, not $15.00, and when you have a stock that's cratered like IBM on what was supposed to be an earnings miss, revenues being the incomplete way of looking at this software and consulting company, you get the kind of ramp we see this morning.
How about eBay (EBAY)? For weeks some research outfit I will not deign to even mention had been peddling a story about really soft merchandise sales. Every time the stock would lift I heard the rumor and it always seemed so rigorous. It was all phony. Although the charitable trust is in it for PayPal, merchandise sales were fabulous. I am blaming a bogus call out of a house that needs commission business for this one.
Then there is Mellanox Technologies (MLNX). This is a tech company that fills a hole in big data/cloud equipment that has been ceded to it by Intel (INTC), its companion in the data center through Intel's powerful Romley chip. I featured this one on "Mad Money" recently, suggesting that it could be the home run again for the second half of the year after blowing away numbers the previous quarter.
Well, guess what? It did it again and I have to tell you that I was aghast when the public, our viewership at "Mad Money," vastly underestimated this company's ability to repeat and instead voted almost overwhelmingly to anoint Arena Pharma (ARNA) the second-half winner.
So, chartists wrong, analysts wrong, public wrong.
No wonder we saw such huge gains!