I want to address the rookie/punk trader, who is fully margined out in stupid commodity stocks, waiting for the market to resume its uptrend. Mind you, this is the same guy who chided “The Fly” for being defensive, with stupid comments and inane financial advice. Yet, here I am attempting to help him out now. My kindness does not have boundaries.
Okay, so here goes.
Don’t get excited about the riots in Greece. They are Greek and have nothing better to do. However, watch for the sovereign debt crisis to snowball through Europe, effectively stealing the hearts and minds of investors. In my estimation, until this is put to the back burner, this is a DO NOT BUY market. While it’s true, I’ve been adding to my Goldman Sachs Group, Inc. [[GS]] position. It’s also true that I have like a gagillion dollars to allocate to such investments. For the average loser, such as yourself, you cannot afford to make mistakes, since it will wipe you the fuck out and send you to the homeless shelter for soup and shit.
If you are 100% long, sell immediately to lower the boom. Effective downside hedges are [[VXX]] , [[SKF]] , [[TZA]] and [[FXP]] . Normally, I do not condone purchase of 2-3x ETF fuckery. However, in a rising volatility environment, levered ETF’s do very well, especially if you can catch a nice crash or two.
With my money, I intend to add to my [[VXX]] position and suspend any buy orders I had in mind, due to my belief that this crisis is still in its early stages. When the bounce comes, use it to lighten up.
My target cash position is 50%. Right now, I am about 25% cash, 13% [[VXX]] .
UPDATE: I sold out of Cytec Industries Inc. [[CYT]] , Southwestern Energy Company [[SWN]] , Johnson Controls, Inc. [[JCI]] , The AES Corporation [[AES]] and Newpark Resources, Inc. [[NR]] . My cash is rising, indeud.
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Agree 100% the crisis is only getting started. Bot some DXD yesterday in the morning and I’m nervously holding on (these inverse ETF’s are a bit scary).
V.King owns 55,000 F @ 11.97
will sell it at 12.45
long position purchased in PCX, $17.85. About 1/3 of of full load.
Fly,
You forgot to tell all “losers” that once wiped out and living in homeless shelters to put their shoes under their bed posts at night while sleeping. Otherwise, all “losers” will be “wiped out” and without shoes. Soup, Shit and Shoeless! Wow! Its too much.
Went 2/3rds swing long yesterday ( mostly FXE and SLX)
Deployed rest after open in— going long TBT , Short EUO ( ultra short euro).
Going full “peter schiff” after bashing him for years, is ironic. But I see an epic euro squeeze coming here.
and, HK at $20.80
Thanks Master Fly.
How do the gold sack robots print green in a dripping red day.
——
If TMoe shows up I we could be getting near the bottom as he’s a great indicator for the long side. In fact I use Moe and the PPT to set up long trades. No kidding. Let’s see if it works. If the PPT is in the golden 30’s and Moe prints a comment it’s time to load up and I don’t care what anyone says about that shithole referred to Greece.
Fly, Any thoughts on a good price to add to SD? Under $7 maybe or let it go down some more?
Not that it means anything, but I added at 7.20 on the open.
Are we not speaking about the fly moves of 1-2 weeks ago?
What about the PPT buy signal?
That is privileged information to distinguished gentlemen only.
Write a book, fly. You have immense talent for writing.