Okay, the burden of responsibility is now on the shoulders of men wearing fancy pants. The ECB is not the Fed. In my estimation, they are too fractured to come up with a cohesive plan over the weekend. This whole little crisis is likely to snowball out of control, turning it into a giant snow man, armed with rocket launchers and shit. I underestimate the Europeans, based upon history. However, there is an outside chance they will concoct some sort of scheme to placate markets— leading to a Monday melt up.
As a result of this sovereign debt crisis, the credit markets are tightening, ipo markets have seized and sentiment has turned decidedly negative. You need to understand these things and throw away your investment thesis of two weeks ago. Things change and so should you.
Here is my game plan:
Because of my large [[VXX]] position (28% of assets), I am up another 2% for the day, bringing my year to date gains up to 17%. With my cash reserves (38%), as discussed in earlier posts, I intend to buy your margin liquidations, with great vigor. Thanks in advance for that.
I am circling the wagons around three names (that’s right, just three):
POSCO (ADR) [[PKX]]
Goldman Sachs Group, Inc. [[GS]]
Eastman Chemical Company [[EMN]]
All three are market leaders and represent good value, based upon current estimates. Furthermore, should the market get flogged some more, they will not receive homo-hammers to the scrotum, just small meat tenderizers to the face.
In short, “The Fly” wins again, much to your chagrin.
In other news, my friend, equity partner, and fellow blogger Chart Addict will no longer blog here at iBankCoin. He has moved over to Stocktwits aka The House of Lindzon. Knowing CA for more than a year and meeting him in person, I can say, without hesitation, he is a real pro and an honest/trustworthy person. Access John’s farewell here.
NOTE: Elections for the next tabbed blogger will commence Sunday night. Mr. Caine Thaler versus ChessnWine. Be there! Oh, one last thing: because of the elections, The Fly’s weekly cartoon will air tomorrow.
[youtube:http://www.youtube.com/watch?v=etl9kkIGaHo 616 500] If you enjoy the content at iBankCoin, please follow us on Twitter
Strong work, Fly. Big gain for me in VXX, a position I might not normally have taken. I sold out of half my VXX position today.
This was always the criticism of the EU and euro, monetary policy largely divorced from individual country fiscal policy. Bernanke devalued first and will win (as will China IMO), I agree it would surprise me if europe canbget their collective act together in a weekend.
Thanks for the great blog.
Copper was the supposed tell for the market rally of ’09 because the Goldman robots were sauntering through city parks solving chess games and buying expensive copper jewelry for their robococks but since they all got melted into ghetto fab teeth yesterday the humans are back and sugar will be the tell for the recovery.
History has proven that The Germans, French, Spanish, Italians and Greeks have never gotten along very well with each other. Bring money and or, the loss of it into the mix, and you will without doubt have trouble. I don’t see anything but friction between these countries and the Euro problem for a long time to come. They could very well bring themselves down hard by not being able to fully resolve the problem.
There are still lots of men and women over there alive that were in WWII and those people, although very old, still remember it.
What if some one shot Greek Prime Minister George Papandreou or any of the heads of state from the PIIG nations.
this whole week has been a lot of noise over nothing. But if they had to sell off the market, I am glad it was over such silliness which I why I was buying leadership stocks on this correction for my long term account.
The eurotrash have always been somewhat retarded with money unless they were royalty. But they make awesome cars and a mean cuppa joe so all’s not lost. Their villages and cities rock, they are thinner than their american counterpart ( they don’t over -eat) but best of all, they know how to wear scarves and drive vespas without strangling themselves, and still blow citaines in your face even knowing how pissed off it makes ya. Now how cool is that?
BTW I don’t consider Greece european- more like pseudo middle continent kinda thing. When I think of Greece I think of Anthony Quinn and when I think of Anthony Quinn I think of sweaty bad dancing on a polluted beach. Cheers!
Thoughts on Fast fingers on the mute button Money show
props out to my man terranova – the man speaks bullshit with more conviction than Rush- I must take notes.
Timmy Sea of Grease on the other hand wants to be just like Joe when he grows up.
When I look at Najarian I think of his bathroom at home and I get a gag reflex.
Adami who now calls himself gee cause I guess his wife thinks it makes him sound less sicilian looks hygiene challenged. Melissa fish lips really bothers me as does the world right now. Let’s clean this mess of a world up people! Cheers!
LOL funny stuff there Mrs. Buttons
thanks chesserroo – hey check out my website… wealthmiser dot com foreward slash blog –
BTW I always misread your handle as Cheese and Wine!
See ya on stocktwits. (Howard follows me cuz I think I make him nervous hahaha)
Good luck on your impending victory!
Chesenwine, i have enjoyed your column very much. And i have enjoyed our witty banter. I am voting for you my friend, because its nice to be heard and responded to on the column. You have my vote and patronage. Fly, and also jake gint, both of your columns are top notch and i enjoy your rapier like wit, bravo!
As i spend my bosses money and drink margaritas in louisiana, salute’ to you all!!
Good stuff, thanks Rand. I lived in Louisiana for three years and I definitely miss that place.
Definately a place to party. Sometimes I forget that i am a texican, and I believe i left my purple t shirt somewhere behind when i pass the san jacinto monument, and i remember why i am texican. God, i love both states. Why cant i be two people?
Jim cramer likes domestic stocks here only—Im 50% in RSX and EFA
Jim Cramer hates the Euro here—–My other 50% is in the Euro
Jim Cramer says to take small positions—-Im 100% long for first time since february. was 50% tuesday, went 100% yesteday.
Tonights “Mad Money” has really boosted my confidence. Im glad to know that my portfolio is “full costanza” opposite of all of his thesis, tonight.
Selling the shit that dropped the least, and buying the stuff that dropped the most. More bounceback is what I’m after.
Sovereign debt crises are the final leg of the credit crisis that started with subprimes. Greece is most likely the beginning of this leg, not the end of it.
This has been a nice week to have hedges and short exposure. Thanks to some of that, another up day on this end.
Traders Audio from the plunge:
http://www.youtube.com/watch?v=ZiZtPTLuPtw&feature=related