FULL CASINO:
June has 37 IPOs, the highest monthly number since Y2K. Eighteen of those IPOs are this week (two carried over from last week). Six tomorrow alone. Wall Street knows that its window of pump and dump opportunity is closing, so they ordered up a convenient double pump (and dump) to suck in the ETraders one more time...
IPOs Per year (below). 2014 YTD is 65% higher than YTD 2013 count for the same time of year (2014 data below includes pricings through the end of this month):
37 IPOs in June, the highest count in fifteen years
IPO Count (all exchanges) by month for the past year with the Nasdaq in the background:
And, let's not forget the 100 lockup expirations occurring over the next several months:
Wall Street is Burying the Market in Junk
The first round wasn't good enough, so Wall Street decided to take a bigger swing at the Nasdaq which is already staggering under the weight of recent IPO junk. Only half of its components are currently above their 200 Day Moving Average (red line below). This should do the trick, 12 new IPOs this week just on the Nasdaq, while Tesla & Co are getting set to start wave 3 down...
Junk stocks peak last
37 IPOs in June, the highest count in fifteen years
IPO Count (all exchanges) by month for the past year with the Nasdaq in the background:
And, let's not forget the 100 lockup expirations occurring over the next several months:
Wall Street is Burying the Market in Junk
The first round wasn't good enough, so Wall Street decided to take a bigger swing at the Nasdaq which is already staggering under the weight of recent IPO junk. Only half of its components are currently above their 200 Day Moving Average (red line below). This should do the trick, 12 new IPOs this week just on the Nasdaq, while Tesla & Co are getting set to start wave 3 down...
Junk stocks peak last
I've noticed, that for some reason, the junkiest stocks peak last. I would put profitless IPOs definitely in the junk category. However, before we get to the IPOs, let's look at some of the recent high flyers that crashed in April and recently got pumped again...
Tesla Double Pump
Nice a-b-c corrective retracement, plain as day
Yelp
Ditto...
Solar Supernova
Solar stocks re-pumped on mega-volume...
Now below we see a bunch of IPOs that came public in April during the "correction" and missed out the traditional pump and dump. These all got "single pumped" this time around...
Classic single pump for 200% gain in three weeks...
Same thing. If you can't con them the first time around, just wait for the second pass...
These below I call double pumps. IPO stocks have very small share floats by definition, so assuming they are not yet at their 6 month lockup expirations, Wall Street can take these things for a ride twice...
Classic double pump:
Pump and a half
Airline double pump
Another chance to buy American Airlines at the top...
Canary in the Coalmine
Speaking of junk, Dubai's stock market was down ~8% overnight and is down 25% from its recent peak. Meanwhile, the newly issued UAE ETF, is trading like a recent IPO:
Bonus Chart:
Since Junk peaks last it tends to crowd out what were recently decent quality stocks moving higher...
Canadian Pacific Railway
Wall Street is going to monkey hammer the Etraders again, with even more junk.
POSITION ACCORDINGLY
