Real quick:
I blew out of the entirety of my [[VXX]] position, booking millions of dollars in profits in the process. With a small percentage of cash, I doubled down in both Eastman Chemical Company [[EMN]] and POSCO (ADR) [[PKX]] , positioning myself to sell both names into strength. It’s a bold move, but worth it, in my opinion.
And, to get broad big cap tech exposure, I bought some [[TYH]] .
However, longer term, I am very bearish on the markets and will look to re enter [[VXX]] lower. In addition, I will begin a short selling campaign, on individual names, who are deserving of a good lashing or 5. My plan, which may fail, is to ride this oversold bounce to the tune of another 5% gain, then reverse positions to the downside.
Based upon the sublime laws of The PPT, all to do with mathematical harmony, we will bounce today, AND MORE.
Finally, my current allocation is about 50% cash, 50% equities.
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The Fly is God. No doubt.
The Fly is ‘a’ God, no doubt.
However,
“Truly, all your fabulated (invented) gods and tin gods as well as your false prophets and your priests and servants
of gods and servants of tin gods are unable to eliminate (eradicate) your faults that you commit, and
there fore they cannot redeem your culpability which you bring down on yourselves, because the redeemers of
your culpability and the eliminators (eradicators) of your faults are you yourselves.”
That said, party on, Garth. 😀 😛
Fly
Two questions:
When you say we will bounce, and more — do you mean we will bounce for today and the coming few days?
#2 — what level will you try to reenter Vxx? I got short at 35.67 and am trying to decide where to exit.
looking for a 200-300 point move. Time frame: 1-2 weeks.
Been lurking forever, but just want to say thanks. You really are a brilliant money manager.
Le Fly, Would you be kind enough to explain your new found bearishness? What makes you believe that China wouldn’t be able to manage growth and Europe will go back to the stone ages?
Thanks
Panda bear
Fly, we almost hit your Monday call of Dow 9900 today. Nice work in the time machine.
Here’s some numbers on the Friday dip and Mutual Fund Monday bounce ripped from CNBC:
Buy on Friday’s close, sell on Monday’s bounce. Here are the cumulative point gains for the Dow Industrials for each trading day of the year so far:
– Monday up 1,076
– Tuesday up 12
– Wednesday up 114
– Thursday down 841
– Friday down 721
I hear a giant squeezing sound
I have sent orders to my brokerage to sell about a thousand call contracts, well above the money, on various uber levered ETFs. I don’t know if they will all fill or not. Premiums were huge. Any of the following should allow those suckers to make me money:
the markets finishing the year above 800ish on the S&P. The VIX dropping significantly at least once in the next 3-8 months. Any significant move up in the markets. The markets simply returning to somewhere remotely near this level sometime between now and 3-8 months.
I fully understand the unlimited risk of a move like this, but in this case I think its basically free money. And as I was lucky (as opposed to smart. it wasn’t smart, I wasn’t calling for a downturn, its just discipline that I always buy back any short options if 70% of the premium or more has melted out of them) to cover all of the short puts I had before this downturn… I have margin room aplenty.
If I get 1/2 or so out of them w/in 2 weeks I will close.
This has got to be the slowest mother fucking website I’ve ever fucking seen. Why don’t you guys take some of that fucking advertising revenue that your gouging your advertiser for and find a fucking suitable web developer that can web optimize this piece of shit.
37 seconds:
http://www.youtube.com/watch?v=xjWbrSUwJxA&feature=related
Fly, do you advise to hold my ultrashort positions in FXP and SKF ?
Thx,
Mr. Max
Careful: I think you’re going to get killed in TYH.
There, I done it. I stopped being a lame azz freeloader and upgraded to piker.
Covered my short VXX position…Made too much too quick couldn’t stand to watch it evaporate.
Up 3% on the day.
82% more and i will be out of drawdown.
THANK YOU FLY. Shadowing your moves, albeit poorly, took some of the sting off.
This is going to be really interesting cuz spot price in ore off of China and India isn’t showing demand and keeps falling….I will watch and learn these bounces.