iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,471 Blog Posts

Slippage

The market has a bad vibe to it, over the last few days. The market isn’t getting rocked; but at the same time, it is slowly bleeding out.

From tech to cre to banks to oil, the market has punched the livers out of a variety of names, particularly those of the small cap variety. The best sector in the market has been agriculture chemical stocks, like MOS, AGU and POT. But, they can’t keep going higher, while everything else is flaking out.

Don’t get me wrong, I am not declaring the end to the bull run. As a matter of fact, I have no desire to short stocks. I am suggesting to be mindful that a correction is at hand and it may continue, until there is a catalyst to shoot higher.

With my money, I bought some PL and will likely add to some of my loser positions, prior to the market close.

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41 comments

  1. The Zombie

    The Fly is God.

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  2. The Contractor

    The market has mashed potatoes (sic) for legs.

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  3. CAP

    So now you ‘maintain’ the bull market is ending ?

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  4. JakeGint

    Please don’t tell me you are hyping PL after they just did a secondary?

    Companies sell equity when they believe it’s “well-priced.”

    And that’s putting it “gingerly.”

    ________

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  5. j

    Welcome back Zombie.

    We haven’t seen you in these parts of heaven recently.

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  6. The Fly

    Who is hyping? I am stating a fact.

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  7. Long FTK

    “The best sector in the market has been agriculture chemical stocks” – except for FTK! Is this thing dead or what?!

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  8. The Fly

    I bought PL in secondary and after market.

    FTK is the black death. Oil stocks are getting nailed and this one stinks. I am riding it out.

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  9. j

    Earlier, I says
    The Fed or the US is quite happy to return anyone’s gold any time.

    Jake says:

    Right, and Nixon blew up Bretton Woods because… he was feeling “impish” that day?

    You currency traders should be wary of falling in love with your bullshit product.

    Jake,

    It’s a little different. Nixon blew up the gold link because the French turned up one day and “wanted their gold”.

    It doesn’t mean they wanted to take back the gold that is held on their behalf in the NYC’s Fed’s vaults. What they wanted to do was to to convert their Dollar holdings into gold. That is, convert their dollars at the fixed rate and the US to hand it over to them.

    80 feet below street level is the Fed vault where they hold gold for other nations on a custodial basis. If these countries wanted the physical return of their gold the Fed would not only be obliged to hand it over , they would be fine with it.

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  10. Punched Liver

    I just got back from my local foreclosure sale. Out of 400 or so properties, zero or 0,000 properties sold. That never happened there before, where there were zero sales.

    Every single sale was postponed (stayed or continued) until Jun, Jul, Aug or TBD.

    That means the banks are paying all expenses on these properties for a few more months without a penny of income.

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  11. Goin'Fawr

    Well then j, let’s just see how this call ‘pans’ out then…

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  12. Punched,

    Were did that foreclosure sale take place?

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  13. gappingandyapping
    gappingandyapping

    I have been out all morning doing some cre research. The findings were astonishing. In the chicago metro area people are begging for vacancies to be filled. What was once jackmeoff everyday I own godly storefront property is now home to transient piss puddles and burrito wrappers. I don’t know what equity traders are seeing but they might want to step out of the pit for a couple of minutes and look at the massive vacancies. Trade accordingly. By the way my energy sources were dead on with ftk, its a scrapyard, why didn’t I listen to them.

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  14. JakeGint

    If these countries wanted the physical return of their gold the Fed would not only be obliged to hand it over , they would be fine with it.

    Obliged, definitely. Fine? Not so sure.

    It would definitely constitute a “Ban moment” for them, and for anyone who was trying to keep a bullshit currency afloat in a sea of fiat.

    ________

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  15. Treepart

    Not one F/C property went? Were there bids that were not accepted or just no bidding? If a bank thinks that kicking the can down the street 3 or 4 months is a better option than getting crap off the books now, they’re delusional. Unemployment rates will continue higher and so will the rate of REO properties.

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  16. so i herd you liek mudkips
    so i herd you liek mudkips

    closed out my shorts for breakeven. a little confused as to what direction the market is going

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  17. JakeGint

    Still awaiting Liver Punched’s location.

    Talking to a broker the other day, and he said that the majority of the RE (and REO) problems were in four states:

    California, Nevada (ie, Vegas & Reno), Arizona and Florida.

    I told him I was surprised NY hadn’t shown up yet… he said “just you wait, ‘Enry ‘Iggins.”

    (He’s cockney.)

    ___________

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  18. Sgt. Preston RCMP
    Sgt. Preston RCMP

    Jake, any opinion on IMF desire to sell gold? j, why didn’t you try the Oz fund, EWA? It ran up over 60% off the bottom. I looked at NGD this morning but I am not buying any more here – I have enough for the circumstances – maybe too much.

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  19. j

    Goin:

    The Germans would NEVER make an announcement like that unilaterally, that is without the EU behind them. They can no longer speak about international monetary matters such as what you’re suggesting as the ECB has that role.

    Think about it… would the Germans …..part of the EU…..suddenly align themselves with a bunch of towel headed camel drivers and not speak to the EU to the ECB about it first and get their commitment to go along. It doesn’t work like that.

    I don’t even think the towel heads would contemplate this at the present time in terms of switching over to gold as gold has no monetary utility in the sense that you can’t sell a few hundred barrels of oil receive gold in return and then spend the gold in casino’s and western hookers immediately after.

    If the world’s big central banks decided it was time to switch to gold then that would be a a different story. For that you would need the ECB, the Chinese CB, the BOJ , India and several other players. It isn’t going to happen.

    The problem with gold is that people still consider it has monetary value. It doesn’t as you can’t use it either directly or indirectly as a currency or medium of exchange.

    However it does have utility in the sense that you can make jewelry out of it (which can be a dead cert for sex for at least a week) or people want to use it as a store of value against troubled political times or inflation. I am beginning to question the last one as gold has been a rat shit store of value.

    Even though people know we’re going to be fucked with inflation they still like using money as the medium of exchange and the Dollar will remain the reserve currency for longer than what people think.

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  20. Treepart

    Yea, the states with the most sand have the most REO problems. Up here in CT foreclosures don’t stick around too long.

    The NY real estate market held onto value a lot longer than the majority of the US. That changed last year when the financial industry shit the shower and prices finally started falling.

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  21. trader y

    You know what’s interesting is that the really desirable places to live are barely down, even though they are v expensive. Palo Alto a very good example.

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  22. Big Mike

    Fly,

    You applying for TARP after this week’s run?

    Even that douche Guy Adami is bearish…

    Its never too late to join my side, brave king…as I am a merciful god. All I ask is for you to kneel down and accept my godly financial advice.

    http://www.youtube.com/watch?v=a44KxdCCOUk&feature=related

    Top pick: Short QQQQ’s until 875 on SP500. That small cap bullrun is gone. Russell has already broken trend.

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  23. Goin'Fawr

    “The problem with gold is that people still consider it has monetary value. It doesn’t as you can’t use it either directly or indirectly as a currency or medium of exchange. ”

    Maybe the mongrel clerks at your local ‘Food Flood’ or ‘MegloMart’ wouldn’t have the savvy to accept gold as currency, but I’d bet if you went to your locally owned corner store or to a Farmer’s Market those boys wouldn’t be so foolish as to pass up such a lucrative exchange. There are plenty of other reasons precious metals make decent currency too, but I don’t have the time to point out the obvious…but if you want to invest in a 3xGold Bear Plus ETF, send me your gold and I’ll gladly set you up!

    Sgt. Preston, I know you asked Jake but: IMHO even if the IMF was to sell all of their bullion, it wouldn’t amount to a drop in the waterboard of demand. Sure it might affect POG for a short while, but not for long. Also, it would leave the IMF exposed to guys like j, with nothing but bushels of FIAT paper, which may well depreciate faster than they can spend it.

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  24. sergei

    Anyone know where to find stocks for which option buyers stand to make the most money on options expiration? In other words, MAX PAIN for option writers not buyers. For example, on monday during week of expiration, stock is 14, and if it closes at 14 on Friday, option writers stand to lose 300 million, etc – sort of like what would have happend for BAC, except that it sold off, and is now trading at MAX PAIN for option buyers.

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  25. j

    Jake:

    We once took clients down in the vault as the Fed at the time obliged us.. We went down by elevator and found ourselves looking at a huge cavernous room with discolored looking yellow bricks behind prison like doors/gates.

    There was a fucker there, behind the prison door literally taking a pile of bricks one at a time and loading them on a hand guided fork lift. Someone asked what he was doing and we were told that there was a gold transaction happening and a load of bricks was being taken to another pile. Each pile represented a country.

    It was almost a primitive act.

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  26. j

    Goin:

    No one is stopping you right now from using gold as a medium of exchange. Go right ahead.

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  27. CAP

    @ J Is it like they show in the movie Die HARD with a Vengeance ?

    @ Trader Y Expensive areas not down much because of Pay Option ARMS which expire later this year through 2011. Once that happens, watch high priced areas drop. People with $2 million mortgage paying $5k a month on their mortgage. The payment reset will push that up to $12k. People making $200k a year will no longer afford $2 mil homes.

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  28. JakeGint

    Jake, any opinion on IMF desire to sell gold? j, why didn’t you try the Oz fund, EWA? It ran up over 60% off the bottom. I looked at NGD this morning but I am not buying any more here – I have enough for the circumstances – maybe too much.

    The sooner the better. That’ll be it for those world class fuckups. It might have a momentary effect on price, but well worth seeing them go bye bye.

    ___

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  29. Goin'Fawr

    “No one is stopping you right now from using gold as a medium of exchange. Go right ahead.”

    And: “The problem with gold is that people still consider it has monetary value. It doesn’t as you can’t use it either directly or indirectly as a currency or medium of exchange. ”

    Huh? Is it just me or is that one jumble of incoherent, contradictary blather?

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  30. Sgt. Preston RCMP
    Sgt. Preston RCMP

    Jim Rogers said that he was holding off on buying more gold until it became more clear what the IMF would do. The USA has veto over gold being sold by the IMF. I don’t own the metal – I own miners who produce the stuff below $450/oz. Up here in the Northwest, we like it cold – however, the Klondike and Yukon are not as cold as Howard Davidowitz.

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  31. JakeGint

    It was almost a primitive act.

    That’s my dream job.

    “Gold Fondler in Chief.”

    😉

    ___________

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  32. j

    Cap:

    You get into a huge elevator which doesn’t seem to ever move and takes ages. The doors open to a corridor painted in prison grey, hang a right, walk down boring corridor and wait for the fat guard sitting on a stool on the other side to open the door, hang another right or left to another door and then you get the the spot where you can look at the crap through prison bars. It’s really quite uninteresting.

    The gold is really unimpressive as it’s all these discolored bricks, but there’s a shit load there. I thought it would be shiny and glistening, but it wasn’t

    No, it’s nothing like the movie.

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  33. j

    No, it’s not incoherent, you moron. It’s the opposite as its very coherent.

    People think it has monetary value/ store of value… but it doesn’t as it’s not recognized as a monetary standard any longer.

    You can buy lamb chops, like you can buy gold, but you can’t use it as a currency.

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  34. sleepynaptime

    Goin:

    They owner of your local store and the guys at the farmer’s market are not likely to be able to tell if what you are offering to trade is real gold. I suspect most will kindly suggest you come back with something they know how to value if you want to make a purchase/trade.

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  35. Goin'Fawr

    Not to point out the obvious here: but won’t ‘lamb chops’ go bad if you keep them in your wallet? Gold coins of a marked denomination, however…

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  36. j

    The IMF gold will never hit the market. China will buy what they want to sell.

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  37. sleepynaptime

    Edit function is not working for me.

    Should be “The owner”.

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  38. Dr. Incongito

    Not looking great for the Bulls. Ever since Jordan left they have never been the same.

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  39. Goin'Fawr

    sleepy “They owner of your local store and the guys at the farmer’s market are not likely to be able to tell if what you are offering to trade is real gold. I suspect most will kindly suggest you come back with something they know how to value if you want to make a purchase/trade.”

    I don’t think walking around with ‘nuggets’ would work either. But open up a ‘tab’ with a documented ounce, in a place you plan to return to again and again, I’d bet you could get close to market value….just saying that those without the saavy wouldn’t take it, those with, would. It’s not like I am suggesting you walk around with raw meat in your pocket to use as currency, that would be idiotic!

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  40. JF

    SPY just erased 2 weeks of gains.

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  41. Marty1h

    I wanna be “Gold & Silver Czar” because no matter how primitive, gold and silver are perfect ways to keep score when it comes to money. The writers of the great U.S. Constitution knew that clever and deceitful men would find a way to print so much money as to make money a dread. Until we re-install the heathen yellow money, we can expect our buying power to suck. Me, I don’t like higher taxes even if it is inflation. I like recessions that are deep and very short; take the pantloads off the production line and power up. Long recessions like this one is too hard to save for because it cuts so deeply into capital. http://www.endthefed.us

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