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
23,433 Blog Posts

Prepare to be Surprised!

If you take anything from my blogs, heed my warnings over a cup of boiling hot tea. While drinking the tea, preferably Earl Grey (preferred beverage of all gentlemen, east of Kansas), recall my message in its entirety, not my inane tweets or rapid fire blog posts.

Here are the cliff notes:

  • The market is being led around by the daily fluctuations of the Euro.
  • Due to detrimental debt concerns, coupled with austerity measures in Europe, the market needs to reprice equities.
  • Just because the market is supposed to go lower doesn’t mean it will.
  • I have ZERO shorts on my books, but 28% of assets in [[VXX]] .
  • I strongly suggest a hedged approach to this market, due to the nonsensical mannerisms of recent trading.
  • Day trading is for birds. Think bigger and longer term; God will smile upon you for it.

Today’s reversal was impressive, led by gains in the euro. Nevertheless, I’m not buying into this shit, as I happen to travel through time via time machines and have knowledge of what is coming. Regardless of what you think, sentiment is different now. For a long, long time, we went up, uninterrupted, thanks to improvements in global trade. While all of that is true, ask yourself, what the fuck are the following “global growth” stocks telling us?




Top picks: Eastman Chemical Company [[EMN]] , [[VXX]]

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95 comments

  1. GETGroup

    Global Growth = Sideways at best

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  2. Sam

    OMG Charts!

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  3. cashnguns

    i would suggest some Tazo Green Tea..the earl grey crap is for Brits with 3 teeth….

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  4. joe

    28% of assests on VXX…You’ve got balls of steel!
    I’ve got a little of it and will add more but not anywhere near double digit exposure.

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    • Heaterman

      Did you fail to comprehend the above post? It has nothing to do with testicles made of ferrous material. It’s the time machine……alllllll about the time machine.

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  5. TA

    That’s a ridiculous amount of charts for someone such as The Fly

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  6. Jakegint

    Those charts say “Stay away from Linda McCartney’s Grampie’s company!”

    ____________

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  7. francesco

    likely not the fly posting here indeud

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  8. tgarfield

    Does the roll effect in VXX not make it a bit of trade and not a hold?

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  9. lindsay

    that the market generals are recruiting new drivers apt at fazmobile operation?

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  10. Dave

    AKS is one of my shorts. Nice little comeback from today’s lows for the longs.

    “I strongly suggest a hedged approach to this market, due to the nonsensical mannerisms of recent trading.”

    Excellent suggestion. I shall e-mail you demo access to a proprietary hedging tool forthwith, so you can decide if it would make a useful addition to your armamentarium (or that of your followers).

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    • The Fly

      fuck off

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      • The Fly

        thanks dave. will look

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        • Jakegint

          4:18 — pre-medicine.

          4:52 — post-medicine.

          _________

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          • Dave

            Perhaps Dr. Fly appreciated my correct usage of the medical term armamentarium.

            As for you, Jake, I offer this blog post, Me and LT.

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          • JakeGint

            Funny stuff. Guy definitley lived a charmed existance…

            ___

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          • mrsbuttons

            market – equal opportunity hater -longs and shorts equally screwed -depending on what hour you’re looking at.

            Cheers!
            tripledubdot wealthmiserdotcomforwardslashblog

            check it out…”taking it in the shorts”

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          • MOOBER

            You should try cutting and pasting the URL or just add it to the “website” field in the comment login.

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    • Jakegint

      In some sense, that’s not inaccurate.

      I highly recommend the earlier work of James Ellroy for reference.

      ________

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    • Dave

      Last week they were shooting the family dogs in front of the kids, and now they’re shooting the kids. F’d up.

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    • YaBollox

      If you have a murderer in your house, the cops may burst in with guns blazing. Your kids may be a risk.

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      • JakeGint

        Sorry, that doesn’t cut it. Cops are held to a higher standard, and “Wild West” ain’t it.

        Full disclosure — brother’s a cop, multiple uncles are cops. They would agree w. the above statement.

        _____________

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        • mrsbuttons

          what are the Chinese doing with gold? what’s their agenda? thanks…

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          • Jakegint

            a) Hording it.

            b) Depends on whether you are talking the gov’t or the populace. The gov’t is likely trying to diversify it’s reserves away from the dollar concentration (and now, Euro), and the populace is likely trying to guard against infration.

            _________

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          • Heaterman

            Infration. HaH! I like that. Very funny in an obtuse sort of way Mr Gint. LOL I can hear them say it that way.

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        • YaBollox

          I think it depends on how dangerous the arrestee is expected to be, is he expected to be armed and dangerous? How much danger is anticipated in capturing the guy? And if, as a parent, you allow a guy in your house, and put your kid on the couch in the living room, and the cops are trying to arrest a guy you are harboring in your house, and he is armed and dangerous, you are taking a big risk with your family. Not that it’s okay the child was shot. But do the cops bursting into the house wait to recognize a moving person in the dark smokey house? If it’s the felon do they give that guy a chance to shoot first? These are very tough questions. I have to think the parents are partly at fault for this very sad event.

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    • mrcainthaler

      Denninger should stay out of Detroit politics; it is messy business, where everyone is in the wrong, save for a few minutes when they get national sympathy.

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    • fi

      related but slightly ot
      Henceforth, police officers will be know as “Revenue Agents”

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    • Heaterman

      Color me Up North, sitting cocked, locked and ready to rock, waiting for the inevitable day when Detroit melts down and the roaches head for the hills. That is all.

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  11. cashnguns

    police comment…freaking classic..damn why didnt I think of that…but I shall use it…many thanks.

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  12. toptick114

    X the word “Growth” domestically, as well as Globally.

    There is NONE. ZERO.

    The only ‘Growth” is found in Deficits, both domestically, as well as Globally.

    Indeed.

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  13. scum bucket bitchez
    scum bucket bitchez

    Ah, my dog X. What a ride.

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  14. Dr Fly

    Notice how VXX was up 2.3% while VIX was down?

    That’s what you call space alien magician shit, folks.

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    • tradingnymph

      I noticed that too…and SMN up the same amount as VXX…..BUT FXP just like .75% up after the night China had…..these etf’s are so messed up.

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    • TA

      That’s because the VIX futures are no longer heavily in contango but in slight backwardation.
      The VXX is no longer the POS it so recently was.

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    • Steve Place

      VIX futures curve is actually flat.

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    • mrsbuttons

      either that or it is what they say it is – nuther flawed etf. hope not I own some too, but reluctantly.

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  15. jeff

    the roll effect in VXX makes it a horrible stock to hold, FLY. VXX uses VIX options which are based on VIX futures, which are based on expectation of where VIX will close on expiration. since VIX is an estimation of 30-day implied volatility with no cash value the VIX futures don’t even track “cash” VIX.

    you are essentially buying a derivative of a derivative of a derivative of an estimation.

    you’d be better off buying puts on the S&P 500 and get the direct protection as well as the exposure to volatility.

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    • Dave

      OTM puts on SPY were pretty cheap when vol was lower, before the flash crash, the worst of the Greece nonsense etc. Fortunately, I picked a few up back then.

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  16. Le Fly

    Ta

    So the worm turns. Who would have known?? Hmmmm

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  17. Le Fly

    Jeff

    I am better off in vxx for liquidity reasons

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  18. RosenRush

    Fly, how do you justify holding on to long positions in such a f’d-up market? What I mean is, why buy all these longs with the VXX hedge, when you are basically going to end up near 0 in the end. Yes you can zig and zag to end up with small gains on both sides, but realistically your gains are limited by holding offsetting positions and in the end, is it really worth all the effort?

    Why not sit back and wait until this crap sorts itself out? If the market goes up, get long. If it falls to crap, get short.

    I realize day trading for you doesn’t jive with your clients’ strategy, nor is it probably anywhere as realistic to day trade your account vs. the size of mine; with that said, I can’t justify picking either direction for any period of time (other than time marked in hours), since the market changes its mind daily.

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  19. RosenRush

    Berkshire buys into BDX…I became familiar with these guys back in my Baltimore days. If I was a PE shop I’d take these guys out, pretty it up around the edges, and flip it to a strategic…maybe not the best timing in terms of the overall market, but these guys will continue to perform for years to come so a patient owner will be rewarded.

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  20. Le Fly

    Rosen

    Just because i hate the market does
    Not mean it will adhere to my demands. Over the past week, my blend of long shorts
    Is working nicely, enabling me to squeeze out .5-1.00 gains daily. At some point i will get more agressive.
    But, for now, i am still suspect of the market and
    How it likes to kick shorts in the nads daily. My approach is supreme now

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  21. Casony

    Their telling us to buy them. I am picking up some of these monster size businesses at lower prices. How often do we see fcx in the 60’s ? Fwlt at 25?

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    • Harry Taco

      I totally agree. This is not even close to 2008 and that was also an overreaction. IF you are medium to long term trading, you are buying now. Remember, he missed most of the runup, if you read the history. Peace out. 100% long….

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    • RosenRush

      If memory serves, FCX was about 1/4 the price a year and a half ago…I’ll wait until it gets a little closer. You notice copper prices lately? …something ain’t kosher around the world.

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  22. Le Fly

    Fuck yeah!!! Buy them

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  23. Le Fly

    Fuck yeah, 100% long on margarine!!! Crack a beer and rejoice

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  24. Cascadian

    Do we have to suck because of the Euro’s?

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  25. No One

    Market is not made up of 4 stocks.
    If global growth is dead there will be other stories to chase.
    It’s always been that way.

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  26. Dr Fly

    I just named 4 companies that are vital to global growth, Obviously, you know dick from doorknobs about the market. Please refrain from embarrassing yourself further.

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  27. No One

    And this will determine the fate of the stockmarket.
    That made sense (not).

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  28. Rand

    Hey fly,
    K-Mart turn out graduates as well, but NOONE knows their names.

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  29. Le Fly

    I cannot gurantee much. But i will guarantee this: thw mkt cannot go up without steel. Stop playing gordon gekko. You idiots dont know what you are doing.

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    • alvari40

      Steel has hit a short term bottom as of today. The likes of VALE, X, AKS, MT, RTP and CLF will propel the sector higher by >5% from today’s low by the end of the week.

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      • Dave

        My micro cap picks & shovels play on the steel industry is up today. They just announced a big expansion of their manufacturing capacity. Were building everything in Western Australia, where pipe fitters are making six figures now. Just bought a piece of ground 8x as big in Indonesia to build a factory there.

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  30. Bullish

    Going up. Nice bottom was made today for the short term.

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  31. Le Fly

    So going up

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    • tradingnymph

      lol…hey, notice Shanghai Copper Futures doing the samething as it’s been doing….and Shanghai comp not buying the dip. Yet. Stupid ZEW Data from Germany could still come out high….if not, that could be the straw to break this silly thing.

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  32. Cramerican Univ. Grad
    Cramerican Univ. Grad

    Fly,

    I like you better when you are bullish like cramer.

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  33. fi

    j,
    any advice on where/how to learn a little bit about currency trading?
    ‘ reading the idiot books now

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  34. Le Fly

    Euro getting fucking smashed again. Sweet dreams, assholes

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  35. Le Fly

    Alvari

    Fuck off

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  36. Le Fly

    Fi

    Get a fucking job at an ib. You fuckers need industry experience

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  37. Le Fly

    Copper getting lit up

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  38. KansasFarmer

    Why must Kansas be the cut-off for “tea-drinkers”? No way in hell Missourians drink tea. Also, I was under the impression that coffee (GMCR) was still the divine nectar of the stocktrader…

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  39. slim

    Fly, thanks for the profit on VXX. I’m also glad to have already locked that coin in.

    and, because I love you: http://www.youtube.com/watch?v=rfr40TDfmM0&feature=related

    I’ve got a feeling this is gonna be a good week!

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    • Cascadian

      There’s an uncut version of that, showing the girls nekkid…

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  40. Le Fly

    God bless heaterman

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  41. The_Real_Hmmm

    Where will the major “investment banks” distill profits when stocks and markets aren’t going up 40 pts. per day this quarter?

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    • JakeGint

      The short side, of course.

      ____________

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      • The_Real_Hmmm

        Prepare to be surprised:

        GS lost $2.7B (pre-tax earnings) in trading and principal investments for 2008 after making $13B in 2007.

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        • Jakegint

          Hmmmm… I wonder if 2008 was an unusual year for the capital markets…?

          Let me check my day planner….

          _________

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          • The_Real_Hmmm

            Unusual in that we knew The Fly went short and hit new all time highs for his managed accounts but GS lost money? He had a SAMplanner.

            We don’t know what goes on in the Sigma X black box/trading desks but I’m certain when the markets move and stay outside of 1-2 standard deviations the robots get broke.

            With these volatile moves in equities and FICC (Fixed Income, Currencies, Commodities), I’d bet that GS trading desks are not outperforming. Unless of course their nerdtron masters birthed smarter more accepting bots and retired the old ones into auto-responding “what page are you referring to?” congressional hearing bots. We will see.

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  42. JakeGint

    Remember, in opportunistic times, it pays to chase the best quality every time.

    ___________

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  43. Le Fly

    Jake

    Detroit is devoid of any honor

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    • JakeGint

      Honour? I think it may very well be devoid of any civilization!

      __________

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      • Heaterman

        In a good share of the city that is very treu. At the least it is a very different civilization than what most would describe as the norm.

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  44. Cascadian

    Gentlemen east of Kansas? West of Kansas nobody cares. Kansas is all good.

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  45. slim

    Fly,

    Good call on SINA, up 11% in just a few days.

    Slim

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  46. slim

    GS blows monkey chunks

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  47. tradingnymph

    fwiw, Germany Zew came out below est, but above the rumor 39….would have been cool if 39 would have hit…always next month…economist suck at seeing the true market, yet everyone trust them…can’t figure that one out at all.

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  48. Capt Dick and Doorknob Reporting
    Capt Dick and Doorknob Reporting

    ‘Notice how VXX was up 2.3% while VIX was down?

    That’s what you call space alien magician shit, folks”

    its puff, puff, pass you fucking up the rotation

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  49. Dorothy

    “Gentlemen east of Kansas? West of Kansas nobody cares. Kansas is all good”

    we are not in kansas in anymore. we are in the space alien magician machine heading towards who knows the fuck what… carry on

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  50. Pouilly-Fuissé
    Pouilly-Fuissé

    anyone seen the GMXR car today? looks like people are SQUEEZING in…

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  51. Henry Fool

    GOING LONG NAT GAZ!!I Just went long 4000 WTI @ $9.93

    Check out y Blog if you want
    http://henryfoolspicks.wordpress.com/2010/05/18/going-long-nat-gaz-with-wti/

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  52. scum bucket bitchez
    scum bucket bitchez

    Time to get 10X long with es mini-me bitchez!

    signed

    dr. evil bitchez

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