re: What's everyone been buying? Here's the one week performance for S&P as of 12/24

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I don’t know anything about these companies, but you’re the arguing that the S&P 500 is heading towards 1,300 and you just bought $35,000 of stock that was worth $341,000 a year ago, with no dividend to at least lessen the losses?

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He’s a clown, don’t waste your time with him

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He’s a clown, don’t waste your time with him

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Well I had previously thought he actually believed what he was arguing (like S&P 500 heading for 1300). And while some (or most) of his views come like someone who may be a bit of a quack, he seemed more like a knowledgeable quack, quite a paradox.

But now I’m thinking that a lot of it is a troll after reading his arguments in numerous threads and then take a few seconds researching Akorn (ACRX), the stock he suoosoedky out about $35,000 into.

In particular, a major basis for argument that the market is heading for some EXTREME crash is the debt and leverage in the market. Here are some examples:

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In simple terms, yes debt (corporate, public and private) is the root cause of the problems along with the leverage on the debt.

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The leverage with the help of derivatives swallowed up capital like a vortex. Were the problems solved and foundations rebuilt? Absolutely not, central banks just reinflated with more and more debt and leverage and here we are.

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The Central banks have covered the margin calls so to speak for 10 years but no longer can they hold this thing up. This time around, instead of banks and brokerages being where the problems are, it will be entire countries going tits up.

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What people don't realize is how much credit and leverage is propping up these markets, not to mention foreign dollars. THESE things being pulled out is exactly why the SPX will see 1300 in a couple of years.

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So it’s clear that he sees debt, leverage, credit, etc., as well beyond a typical concern or necessary evils, he seems to seek the as the root of evil. And it is going to not only severely punish the market, it may less to the bankruptcy of entire countries.

Now here is an article from a week ago about the company (Akorn) he just put $35,000 into. And he’s made multiple posts about this purchase, so he must really be proud of it.

Akorn, Inc. -- Moody's downgrades Akorn's ratings to Caa1; outlook revised to negative

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Akorn's Caa1 Corporate Family Rating is constrained by its high financial leverage,

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"The downgrade reflects Akorn's deteriorating stand-alone credit profile and uncertainty around its ability to reverse steep revenue and earnings declines," said Moody's Vice President Morris Borenstein. "With near breakeven EBITDA in the third quarter 2018, Akorn's financial leverage is over 10 times gross debt/EBITDA and brings into question the sustainability of its capital structure if the company is not able to improve profitability."

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And here is what their caa1 credit rating is described as:

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Rated as poor quality and very high credit risk.

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So he spends weeks arguing the evils credit, debt, and leverage, and that the consequences will be extermely severe and anyone who doesn’t see this needs to open their eyes.

And while he’s making these arguments, a company is downgraded to one of the lowest credit ratings because of significant concerns about their credit, leverage, and debt. And he proceeds to proudly exclaims that he bought $35,000 of that company’s stock.

So he has to be trolling, one way or the other, right?

SCHW has AKRX rated just below an A rating at B-12 (A ratings are 1-10) so it is only 2 points away. AKRX was intriguing to me because they just announced a new CEO with a great track record. This company was a takeover target not long ago around $30 per share but the deal fell through. I understand my risk in trading high beta micro caps. I plan on swing trading half the position up to $5 and holding the rest until $10. I never place a trade without an exit strategy in both directions. If it breaks $3, I am out. Cost basis is $3.33

Yes, I believe the S&P will be 1300's in 2020. I trade both long and short (instead of shorting individual stocks I buy SPX puts and volatility etn's of which I sold half yesterday and stepped into some longs). The rallies in bear markets can be unprecedented and my indicators show that a short to intermediate term low is near, probably around SPX 2350 near the 200 ma on the weekly so I went long a few things and will step in long again around that 2350 mark.

Good luck

Merry Christmas

Bought more FCX, RCII, MCK, CLF and GG this morning.

RCII and MCK have been green most of the morning. Things are turning for a countertrend bounce in all indexes.

Just bought DK @ $30.15

I scooped up some T today, dividend yield is too tempting at the moment

Updated map

XOM