Saturday, April 8, 2017

Elliott waves vs. Jim Cramer, redux [FRT]

Jim Cramer is out with another lightening round pick saying not to bet against one of his CEO buddies on Federal Investment Realty Trust (ticker: FRT).  Forgive me for not blindly believing a clown like Cramer just because he has a TV show but this chart does not scream "buy" to me.  In fact, it looks a lot like a full motive wave down has occurred or nearly so and that it will likely bounce up to kiss that green rail, which is now significant resistance, from below.  That was such large support that it has become similarly large resistance so I don't think it will be able to break back up and out.  If that fails as my model suggests that it will, it's cliff diving time for FRT, its CEO Don Wood and Jim Cramer as well.

I want to say very clearly that Don Woods isn't controlling anything here despite Cramer's deification of him.  CEOs just are not that important to the good operation of a good company nor are they going to save a company which is over indebted and ready for collapse.  We are talking about a leveraged debt Ponzi real estate company here with 23 measly million USD holding down 2.8 bn USD in debt.  This will not end well!

Anytime you hear something like "trust the CEO", run away laughing because that is just an emotional plea to get more suckers to buy into the debt Ponzi.  The CEO can't do a damned thing to prevent the eventual collapse of a debt Ponzi.  In fact, if you want to find the truly smart people, find those who bail out at the top and decide on their own initiative to spend more time with the family, etc.  These are the people who really understand that they are a figurehead who can't do anything but ride the economic roller coaster foisted upon us by our acceptance of a fake money supply consisting of fiat currency and fractional reserve lending as if it were real money.  It's not, never has been and never will be.

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