Paul Tudor Jones Warns

Discussion in 'Wall St. News' started by marketsurfer, Aug 6, 2009.


    Hedge Fund icon, Paul Tudor Jones, warned his clients that the rally is nothing more than a bear market bounce, a common occurrence during extended downtrends. However, this negative sentiment was challenged by Goldman Sach's Abby Joseph Cohen who stated a new bull run has started with investors easily seeing a 10% gain in the S&P 500 by years end. Positive data from the unemployment front counteracted a slew of poor earnings reports resulting in a slight negative bias on the day. The DJIA gave back -24.71 to 9256.26, the Nasdaq fell -19.89 to 1973.16 and the broad based S&P 500 dropped -5.64 to 997.08.

    MetroPCS (PCS | Quote | Chart | News | PowerRating) - Missed analysts estimates by 30% sending shares tumbling 29.16% or $3.70 to $8.99.

    Staples (SPLS | Quote | Chart | News | PowerRating) - The office supply retailer was upgraded to conviction buy at Goldman Sachs triggering a rally of 5.50% or $1.16 to $22.27.

    Macy's (M | Quote | Chart | News | PowerRating) - Optimistically rose its forecast sending shares higher by 5.56% or 79 cents to $15.07.

    Home Inns & Hotel Management (HMIN | Quote | Chart | News | PowerRating) - The Chinese low end hotel operator increased its sales forecasts with shares soaring 23.29% or $4.64 to $24.56.

    Oil slipped 3 cent to $71.96, gold eased higher by $3.40 to $962.90 and the fear index VIX advanced 3.09% to 25.67.

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    Market Snapshot
    -24.71 9256.26

    -19.89 1973.16

    S&P 500
    -5.64 997.08

    Economic News

    Construction Spending (Jun): Consensus: -0.5%, Prior: -0.9%

    ISM Index (Jul): Consensus: 46.5, Prior: 44.8

    Auto Sales (Jul): Consensus: NA, Prior: 3.4M

    Truck Sales (Jul): Consensus: NA, Prior: 3.8M

    Personal Income (Jun): Consensus: -1.0%, Prior: 1.4%

    Personal Spending (Jun): Consensus: 0.3%, Prior: 0.2%

    Pending Home Sales (Jun): Consensus: 0.3%, Prior: 0.1%

    ADP Employment Change (Jul): Consensus: -340K, Prior: -473K

    Factory Orders (Jun): Consensus: 0.5%, Prior: 1.2%

    ISM Services (Jul): Consensus: 48.0, Prior: 48.8

    Crude Inventories (07/31): Consensus: NA, Prior: +5.15M

    Initial Claims (08/01): Consensus: NA, Prior: NA

    Average Workweek (Jul): Consensus: 33.0, Prior: 33.0

    Hourly Earnings (Jul): Consensus: 0.1%, Prior: 0.0%

    Nonfarm Payrolls (Jul): Consensus: -333K, Prior: -467K

    Unemployment Rate (Jul): Consensus: 9.6%, Prior: 9.5%

    Consumer Credit (Jun): Consensus: -$4.1B, Prior: -$3.2B
  2. GM chapter 11 = PRICED IN
    125K+ jobs lost from GM chapter 11 = PRICED IN
    unemployment @ 9% = BETTER THAN EXPECTED
    unemployment @ 10% = DOW SOARS
    unemployment @ 11% = GREEN SHOOT RALLY
    unemployment @ 12% = ALREADY FACTORED IN
    unemployment = 35% = DOW DROPS 100 POINTS
    Governme nt spends 1 trillion of OUR dollars = STIMULUS
    North Korea fires nuke = RALLY
    Israel bombs Iran = 30 MINUTE END OF DAY RALLY
    world explodes = ASIA RALLIES
    PMI crashes = HUGE RALLY
    No jobs are created = RECESSION ALMOST OVER
    U.S. debt overwhelming = TOO BUSY RALLYING TO CARE
    Consumer stops spending = RETAIL RALLY
    Banks are insolvent = SIGNS OF STABILIZATION
    American auto industry BK = GOOD THING 8:58 AM

    Banks pass scam stress tests = HUUUUUUUUGE RALLY
    Banks "only need 75 billion = OUT OF THE WOODS
    Banks pass a real stress test = NEVER WOULD HAPPEN
    Banks pay back tarp = LATE DAY SURGE
    Banks can't pay back TARP = EARLY MORNING SURGE
    12% mortgage delinquency = GOOD FOR STOCKS
    Hundreds of thousands of mortgages underwater = HOUSING BOTTOMED
    Dollar rises = RALLY
    Dollar crashes = RALLY
    Inflation = BULL MARKET
    Gold rises = STOCKS RALLY 8:59 AM

    Gold falls STOCKS RALLY
    OIL @ 50 = BULL RALLY
    OIL @ 60 = GREEN SHOOT
    OIL @ 20 = TAX BREAK And the one we should all interpret correctly:
  3. Wonder if he's put on his bruce Willis Tennis shoes yet?......
  4. whaddya think, is this the spot to nail it JJ?
  5. LOL, that is the most funny thing I have seen all day.

    Good work Cat !!
  6. Fundamental jibberish aside, PTJ should command more "respect" but AJC should command more "influence". They both may be "right" about where we are in the market. :cool:
  7. I am tempted to get this framed, it kinda shows importance of actually trading what you see, not what the news says or what you wish !!!

    Brilliant :D

  8. Frame this next to your Picasso(s) instead. :cool:
    • ptj.jpg
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  9. They cost him 6 million for that one day
  10. S2007S has never lived by those words... but I guess you can do that when you "paper-trade" your way to every single inverse ETF from the March lows onward.... and never blow out! :D
    #10     Aug 6, 2009