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Monday, October 12, 2009

Barron's tired old tricks



Remember when Barron's bashed Harmon? With this article?

On August 22, Barron's touted Harmon to 18. It closed that Monday at 27.10. today it is 35 and change. How did a short on that article work out?

So why the story? Because the short interest in Harmon then was 6.66 million shares. And they needed a hand. So Barron's gave all they could, because the people at Barron's, quite frankly, are just lousy at picking stocks. But then, I'm comparing their track record to this. The short interest in Harmon is now down to 2.85 million shares. Anyone see how that works?

So today Barron's warns us about US Steel. Coincidentally, the short interest in this name has gone up 4 million shares the last month, to 24 million shares shorted. Looks like someone needs a hand again.

So Barron's comes out with this story today:

NEW YORK, Oct 11 (Reuters) - Shares of United States Steel Corp, America's largest steel producer, could head lower if the U.S. industrial sector fails to rebound, business weekly Barron's said in its Oct. 12 edition.

The business newspaper said that while U.S. Steel's stock has soared since mid-March, it has recently retreated by about 15 percent off a mid-September high, and could fall even further if the manufacturing sector continues to struggle.
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So in six weeks, I'll come out with another story on X, just like I did on HAR, when the sheep on Wall Street get taken to the slaughterhouse, because they can't think for themselves.The World Steel Association is out today, already predicting a big upswing in steel demand.

Because on Wall Street, you can't buy conviction, and you can't buy trading instincts, but they'll sell you a story of baloney that people will buy, because "they" need the stock lower or higher.

Not realizing, that  they are the sheep which is just fresh meat for the carnivores on Wall Street.

But the sheep don't fight back.
Because if they did, they'd have to make a movie out of it!

2 comments :

Anonymous said...

what's yor target?

Palmoni said...

I think X goes to 55, and then it looks like 72