This is a stock the shorts completely tried to take down. I'm hearing whispers that more than a few people in size, are on the wrong side of this number. I don't like to report on rumours, because most people have an agenda. But this stock is down 150 points from it's high, it has a wonderful international franchise, is cheap fundamentally, and it looks good for 50 points on the chart. And in this market, if the agenda is to "Get Shorty" you are given carte blanche to squeeze.
But the tape gives credence to the rumour. Right before the closing bell the stock was at 177 and change, and a 75,000 share trade hit the market at the close $4 under the last trade, to give the final print of $173.60.
Why would you dump this stock, when it would have a sympathy rally with the financials, when Treasury Secretary Paulson was to announce the "fix the banks" solution tomorrow unless you needed it down?
The time, when those games worked, was last week. Now it's time for the bulls to rip the shorts and jam the stocks into expiration.
Visa had good action all day, and even in Friday's early bloodbath, that stock found bids. Today it closed up almost 7 with hardly a downtick. Mastercard is next. And it should hit big.
Hedge fund guru Julian Robertson, came on CNBC today and said that he was buying MSFT, APPL, BIDU, V and MA. BIDU was up 53 points today to 266.05. This was another one of those stocks that were in the liquidation trades that the hedge funds overplayed their hand on. So is MA.
Wall Street is a small community. Julian Robertson is a famed investor. Watch the link. See how he is recommending BIDU? If you want to orchestrate a squeeze, it helps if you have a legendary front man. Buying at the margin, changes the price. And a good front man, that may be unwittingly used, gives cover to those that want to buy the stock and orchestrate the squeeze. Why buy MA? Because Julian is buying it! And he bought BIDU and it was up 50!
You may think all this is ridiculous and conspiratorial, but you're supposed to think that. Wall Street wants your money!
After all, didn't stocks explode today right when the heads of the banks went over to Treasury? That news, of the big bailout of the banks was already known by those inside. But it gave everyone cover to buy, because "news" should be coming out. Otherwise, who buys up 500?
Watch Mastercard this week.
The squeeze should be priceless!