Wondering how batty this stock market has gotten, citizens? Behold.
Home builder Standard Pacific’s (SPF) shares rose almost 9% to $5.65 in heavy volume today, ostensibly due, we’re told, to a positive trade-publication profile (is there any other kind?) of CEO Ken Campbell.
Note that the publication date at “Big Builder” online says last Thursday, but supposedly a “blast email” about the story went out today. For whatever that’s worth.
Sure, SPF may be in better shape thanks to Mr. Campbell’s stewardship. We’ve read conference call transcripts and he seems like an affable straight shooter and a capable CEO. And, no doubt, investors were well aware of his abilities before Big Builder’s recent profile.
But today’s action makes one thing abundantly clear, and it goes beyond Campbell and SPF: This market is riding on a massive momentum buzz, with traders/investors scrambling from one ascending stock to the next, hoping to leap to another high-riser just as their current ride shows the first signs of fatigue. Doesn’t really matter why it’s going up, as long as it’s going up.
Simply put, when a trade-mag puff-piece (and a dated one at that) has enough influence to vault a stock up nearly 9% amid close to four-times the average daily volume, then we say things have reached the patently absurd level.
And the Fed says it’s hard to spot bubbles before they pop.