Overheard on StockTwits: Mixed Signals

• justin
• September 25th, 2009

Interesting comments by two knowledgeable guys. They are referring to an op-ed by the Fed’s Warsh where he says that the Fed may have to act aggressively to mop up the liquidity they’ve added over the last 1-2 years.

Today was an interesting morning.  The bear’s case got a boost with $RIMM news, durable goods, and housing starts, but the bulls have been fighting trying to keep the momentum alive. My view, is that sentiment got too bearish too quickly, which is somewhat bullish.

I like how @Contrahour humorously puts all this inane recovery-shape calling to rest with the “&-shaped recovery”.

There seems to be a great deal of mixed signals being thrown off by the markets today.  The next break will be quite telling.

The education sector has been really hot lately, and as the workforce is forced to compete for fewer jobs I can see for-profit education companies such as $APOL and $STRA as good secular trends.

Debt is optimism.  The ability for the money supply to expand rests on both the confidence of the lender AND the borrower.  Demand for credit is very important for a reflation to occur and consumer sentiment is of paramount importance to that.

If you haven’t perused the $RIMM stream you should.  The smart money bet in the after hours and early trading today that $AAPL is not $RIMM and they have since decoupled.

@SellPuts nailed a nice short in the credit card companies, $MA and $V today.  The action in these names should be watched, especially given the backdrop of the recent pullback we’ve had.