Posts filed under “Markets”
I am NOT at all impressed with today’s bounce. Even though I mentioned yesterday I was making selective buys, I suspect today’s rally does not mean the end of the downward action.
As of 3:00 pm, internals are only fair, with the OTC advance/decline at a mere 16/14, and up/down volume barely over 2 to 1. Over at the NYSE, A/D is 17/15. while the up/down volume is even less impressive at 7 to 5.
With an hour to go, the volume is completely unimpressive — under Billion shares (814m) on the Nazz and barely 1.23 on the NYSE.
What would make me more impressed with today’s bounce? Broader participation, a significant volume thrust, and much much stronger volume.
Even if we do not see a late day sell-off, my takeway is that today’s move is simply not all that significant . . .
Last month, Jim Cramer ripped Edward Jones a new one; While I agreed with what he said, I didn’t bother to follow up because I assumed Ed Jones had come clean.
From today’s WSJ:
"Edward D. Jones & Co. received $82.4 million in secret payments from seven mutual-fund firms in the first 11 months of 2004, through a lopsided fee structure that in some cases gave the brokerage firm more compensation for selling poorly performing funds than for selling stellar performers.
The disclosures were posted yesterday, on Jones’s Web site as required by its $75 million agreement to settle regulatory charges that it failed to adequately disclose the payments to investors. They are by far the most detailed figures ever made public on the industry practice of mutual-fund companies paying brokerage firms to induce them to sell their products, an arrangement known as revenue sharing. Unlike front-end sales commissions, which are widely disclosed to consumers, revenue sharing has been largely secret."
That’s pretty egregious behavior. I used to think well of Edward Jones as a firm. Non mas. . .
Here’s Cramer’s comments: