See, here's the problem in two nutshells: $IBM and Wynn Resorts ($WYNN). Both are extraordinary. We have a terrific note out on $IBM tonight that says how this was a pretty breathtaking, real growth story, one that deserves to trade much higher. All the woes that people talked about? I can't find them. Then $WYNN, which is both China and America, reports a quarter that's equal to its stock performance -- that's saying something -- and it is a marvel.
Now let's see. $IBM involves big companies making big decisions, just the kind of decisions that were supposed to be on hold. It has government business that we thought was going to be in the doghouse. Who is spending like this?
And who is spending at the casinos like this? In our country, all we hear about is gloom in Vegas. In China, all we hear about is tightening.
Yet, both $IBM and $WYNN boom?
Undeniably so.
Because so few people, however, do believe, and because it is presumed that a default by any country or major bank wipes out any gain, the stocks will not mean anything in the general picture. They will go higher until some EU stumbling block or a cross word by Eric Cantor or Harry Reid. Then they will go down, and no one will care about the quarter.
They will have no lasting pin action at all vs. what would have been robust rallies in tech and in gambling, if not travel and leisure, in general.
That's why it remains a very discouraging market.
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