Excerpt:
Both the Dow and S&P hit their highest levels of 2009 intraday Tuesday, and all seems well for the bulls. But Howard Lindzon of Knight’s Bridge Capital isn’t among them and candidly admits to being “clueless” about the rally at this point.
One reason is the big volume in shares of “bankrupt” companies such as Citigroup, Fannie Mae, Freddie Mac, Sirius XM Radio and AIG, which don’t seem to be moving on any fundamental growth, says Lindzon, who is also co-founder of Stocktwits. There are “just no underpinnings of real growth,” he says. “The markets seem broken.”
How about blaming the alleged “vampire squid” known as Goldman Sachs? From “trading huddles” to high-frequency trading, Goldman has been taking an image-beating as of late. Lindzon argues we should be focusing on our policymakers — not guys at Goldman, who are doing what bankers should do — making money. In fact, everyone had the opportunity to buy at the bottom of the market — not just the Goldman gang.
So what’s Lindzon trading now? He’s “mainly watching” but short Capital One and Best Buy and long a few Chinese stocks, oil, Netease.com and US Natural Gas ETF.
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