This market is Hard – Version 9 AND Looking for "Bubbles" in all the wrong places

If Cisco’s earnings news of last night was a headline in 1999 – The Nasdaq would be up 6-10 percent and the QQQQ up in like fashion. Cramer would be pissing his pants with excitement and I would be kicking my dog for not being able to beat Joe Blow in his basement who was 300 percent long.

On August 9, 2006, Cisco’s news helps Cisco and nobody else. The Dow is down 65, the Nasdaq is barely positive and the talking heads continue to spew fear and talk of oil going to $1,000/barrell.

I love this market. It makes sense. You can travel, you can miss a few days, you can have lunch and you can think. Not just anyone can make money, yet, ANYONE can make money.

The TAPE has been flashing caution for a while. The real bubble of 1999 was a once in a lifetime occurrence where ACTING on news made you money. The stock market is a leading indicator and you should not be rewarded for acting on news, you should be rewarded for being properly positioned before the news.

Another example…

Toll (TOL) Brothers has warned again. If you are reading this blog or anyone on my blogroll, this is a YAWN.

The “get out”on these stocks was months ago. If you are still long, you really need to put your money under a mattress.

More on housing to follow!