MORE ON WALL STREET'S PULL ON THE JPM EARNINGS

In yesterday's post outlining all of my theory of a JPM beat to raise the markets if only for a day, or even just the gap up which is useful, I said this,

 "I fall back to the Wall Street spin machine and their ability to focus attention on a headline beat, rather then the true discounting mechanism of earnings which is, " What will you do next quarter?"


This simply means, it doesn't matter really what JPM did earning's wise, as long as Wall Street could spin the headlines into "JPM Beats" which they did.


And today's commentary, 


"JPM's earnings beat, sort of. Remember in yesterday's theory post, it wasn't important what JPM really did, what they will do moving ahead, what is important is to spin the headline into a beat to lift the market as no other major companies are reporting that would produce a drag, this way many of the stocks that are inverse ETFs or shorts that we saw yesterday that looked to be in need of a pullback for good positioning, will get exactly that."


Now checkout  this article from Zero Hedge showing the true nature of JPM's release. 


So you see, it really didn't matter what they did because the market had no intention of taking a forward look at JPM today, they released before 8 a.m. and at 9:30 on the open the market gapped up. Wall Street accomplished what it needed to, they got the spin machine working overdrive to show an EPS beat that really has nothing whatsoever to do with reality.


It gave us a chance to pickup some inverse ETF's on a pullback, which was good, and I suspect it gave WS  chance to short into that strength. Two important things moving forward are 1) the chance that this earnings season will disappoint badly and send the market lower and 2) the opportunity to see first hand the corruption and manipulation of Wall Street and finally #3), it is possible to see what Wall Street is up to before they act on it and it is possible to play on the same field.


As for JPM, I think the true nature of rising EPS in declining revenues shows that this release was a bunch of accounting gimmicks. The fundamentals that have shored up primary dealers look like they'll change and what will the banks be left with then? Not much worth buying.