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
23,431 Blog Posts

Musical Chairs

Little by little, the chairs are being removed from the floor. Soon enough, the music will end you will be left sitting on the floor, with tin cup, without coin. What you are witnessing today is classic end of the quarter bullshit, as money managers dress their respective windows with all of the finest shit. We haven’t seen this type of volatility in awhile. If you are long NFLX and made 30% this month (LOL!), you have to lock that shit in. At the same time, you have funds who are cash heavy dying to get in the game.

A few things that interest me, aside from perpetually higher equity prices:

FXY fishtails higher daily, much to the chagrin of the Bank of Japan and Japanese exporters.

TLT is rock steady, as retail money floods into bonds.

Banks have been weak all month long, despite the mega-charged, QE2, rally.

The market is controlled, once again, by the minute by minute fluctuations of the dollar.

Gold is the new reserve currency (rolls eyes)

No one seems to be concerned with weak European growth, following continent wide austerity programs.

Why do people think devaluing the dollar will lead to prosperity? Did it work for Japan? Furthermore, are we seeing inflation or purposeful currency devaluation on behalf of the Federal Reserve? Remember, Japan’s currency went down forever, amidst bone rattling deflation.

In short, ignore today’s volatility. It means nothing. Some of you think the market is going to new highs, based upon technicals and other stuff, ideas totally devoid of logic and reason. Others think the market will crash, due to the inexecutable, improbable and impractical U.S. policies that aim to print money, in order to solve deep rooted economic problems. The rest of you don’t know what the fuck is going on and have opted for the luxuries of cash. One thing is for certain: the animals in the zoo are running and in charge of the nuclear arsenal.

Feel lucky?

At the end of this quarter, my gains stand at about 27%. I am currently long large amounts of VXX, despite you motherfuckers panning it daily. I am short AEM. I am long large quantities of TLT and have been buying FXY. I have some longs left, but nothing meaningful.

For the love of homosexual dogs and criminal enterprises, I am positioned for a pullback.

[youtube:http://www.youtube.com/watch?v=FgDnrm8eZ5s 616 500] If you enjoy the content at iBankCoin, please follow us on Twitter

86 comments

  1. weezypicky

    FIG

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  2. weezypicky

    Do I win anything for being first

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    • ecchymosis

      A ‘Get out of Banishment” Card?

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      • Bo Beach

        Your foot picture should be banned. You are disgusting, of the lowest class, and likely long since ‘heeled’

        We’re all trying to be gentleman and shit. And you’re hanging around with your garbagio feet out.

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  3. bubo

    Wow. Look at AEM, it’s a $100 roll…

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  4. Bo Beach

    Mean Reversion

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  5. Bullish

    You must have thrown the towel in on TZA. It’s no longer one of your holdings?

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  6. GW

    Devalue dollar while boosting Euro and then if a bank fails in Euroland the amount defaulted on will be less for our system no?

    Don’t fret over gold it has not gone parabolic yet

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  7. The_Real_Hmmm

    What if it’s a game of electrical chairs and everyone who is happy as fuck right now spilling rum and coke all over their metal chair is about to get fried and the guy with the VXX on his chest and cash in his hand wins?

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  8. bloomberg

    Looking at SCO today made my heart weep.
    at least VXX breathed a bit today

    Fuckery Indeud

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  9. cardiffgiant

    The FED won’t be able to maintain their strangle hold over long term interest rates forever. It’s only a matter of time before market forces defeat FED manipulation. I imagine they will eventually have a bad auction and long term rates will soar. Any investing idea’s based on this scenario?

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    • Just Another Bullish Impostor
      Just Another Bullish Impostor

      Cases of cat food

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      • Just Another Bullish Imposter
        Just Another Bullish Imposter

        Cat food is expected to go up 50% in the short term due to Chinese ingredients and Yuan Fuckery!

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    • go2mars

      Long time-horizon mortgage? A de-valued dollar (either sudden or through inflation) would shrink your debt, and maximize the hard asset values. Another tool to keep dumb people thinking all is well. Wow, my house value went up! Without noticing that their dollars went way down.

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    • chivo

      The bond market is the next bubble to pop. Rates have been dropping for a long, long time and when the bubble stops, and the rates go up, inflation will be fully unleashed…gold, commodities and foreign currency denominated holdings

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      • Bob Brinker

        how can they have a bad auction when its the other hand doing the buying…

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      • alphadawgg

        That scenario is too obvious. This market is so full of fuckery that we need to imagine something more like, “…and in addition, aliens in UFOs drop Hummer sized nuggets of gold on the IMF, thus sending gold prices back to pre-1939 levels, much to the chagrin of the gold bugs”.

        It’s the new normal, you know.

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  10. go2mars

    One upside to a de-valued dollar is that pocket change might have a purpose again. Plus intellectually it controls the dumb masses. Your $100 tomato doesn’t seem like a $100 tomato if it “seems” to only cost $5 for example. Rioting (often stupid) people have been a problem throughout history. Anything that mitigates popular uprising is good for Obama and probably bad for America.

    An example is the introduction of metric time in France for 5 years. The stupid farmers got mad because it wasn’t the archaic retarded system that they were used to. Now we still have metric time. …Dumb masses.

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    • go2mars

      Still have the archaic system of time measurement is what I meant.

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      • Po Pimp

        Metric time is fucking stupid. If you can’t figure out how to read a clock you should just kill yourself.

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        • go2mars

          Yeah, a cycle that repeats 12 twice in a day, easily divisible by 60 twice. Probably the best solution heh? Real intuitive for kids to pick up, or do quick calculations in your head. There’s never been a historical case of problems due to AM vs. PM, and Barak Obama is going to have huge surplus budgets starting next week via fusion power and cancer cures.

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  11. logicalthought

    Fly, I commend your +27% in this insane market. I’m +18%, and it’s been an unholy struggle to get there and maintain it. I’ve never before seen a market where such a generally bad macro data trend (and headwinds) has been counterbalanced by ZIRP and an eroding dollar which are combining to support nominal stock prices. I’m convinced that for now, at least, the question mark surrounding the dollar has made broad-market bets (both stock and bond) a total crapshoot, and thus the focus must be on specific situations in specific stocks in companies that are non-correlative to the overall economy. It’s a shame, because trading “macro” is a hell of a lot of fun, but losing money ISN’T.

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    • The Fly

      I was up over 40%. This past month has withered away at my gains.

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      • logicalthought

        And I was +26% a couple of weeks ago. As you well know, psychologically speaking, at least, it ISN’T “better to have made and lost, than never to have made at all”, lol.

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  12. Trading_Nymph

    Congress went home until Nov 15 and Mainland China closed until the 7th….fwiw….Japan just ended it’s 1/2 year today…..too

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    • logicalthought

      >>Mainland China closed until the 7th<<

      Great, maybe while they're all eating moon cakes, we can sneak up on them and crank out a week's worth of all the shit we USED to make!

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    • go2mars

      At least they passed through a plan for NASA. Not a great one, but a plan is often better than none.

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  13. Le Fly

    There is only one bullish guy around here.

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  14. Mr. Partridge

    Dear Fly,

    Just to note, AEM production cost is below $400, not many seniors with cost like that out here. I am not sure shorting one of the strongest in the sector is prudent.
    Of course you could have shorted GG as one not very smart man suggested here few days ago, and some of their mines produce gold at cost of zero, due to by-products.

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  15. Helicopter Ben-jammin' aka. Bearded Clamfucker
    Helicopter Ben-jammin' aka. Bearded Clamfucker

    No pullback will be allowed. EVER!… If the market even dares to pullback so much as 5% I will unleash massive QE 2 shock and awe!

    Respectfully yours,
    BEARDED CLAM

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  16. Le Fly

    Doctor diagnosed you with terminal cancer?

    Qe2

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    • Helicopter Ben-jammin' aka. Bearded Clamfucker
      Helicopter Ben-jammin' aka. Bearded Clamfucker

      QE2 is the secret to never ending prosperity. It is economic Nirvana, the ultimate free lunch. It is very simple, the BEARDED CLAM just wipes his @ss with your Dollars and presto we have a booming economy. Who needs Dollars anyway, we can just use NFLX stock certificates as currency and we will all be instant gazillionaires as NFLX is destined to go to infinite valuation during our hyperinflationary waltz through QE nirvana. I hear they rent lots of movies in Zimbabwe so that probably explains it. Only a super genius of BEARDED CLAM stature could conjure up such a wonderful creation as QE 2.

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  17. Pizza Slap To The Face
    Pizza Slap To The Face

    bullshitters may be thrown into lit fireplaces as early as october 1, Tomorrow

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  18. noodle

    whatever I love this market. oil to 80 was predictable shit.
    oil stocks might break out, or some shit, too.

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  19. Le Fly

    Lol@ the ultimate free lunch

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  20. Helicopter Ben-jammin' aka. Bearded Clamfucker
    Helicopter Ben-jammin' aka. Bearded Clamfucker

    I think your posts from now on ought to just consist of 2 letters and a number:

    QE2

    There is nothing more to analyze and nothing more to say than that. QE2 sums everything up. End of story.

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    • muktukchuck

      I didn’t realize the British monarch was so popular in the US of Eh???? Queen Elizabeth is kind of old (older than 47 1/2 I’m pretty sure), and sort of unhandsome. Her picture on our Canuckistani money looks like she just ate a shit sandwich too — but if you guys really like her that much who am I to question your tastes or eyesight.

      Good evening Gentlemen.

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  21. Mr Bullwinkle

    Just when I want to get in this here game they all Scatter. Where ya goin? Oh well. I guess I will turn around too..
    Oshi”’t I’m about to be eatin by some big hairy beast with giant paws..Help!

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  22. omen

    For the love of all that is sacred and good, please, market gods, give us a fucking oversold, so I can deploy my cash with confidence!!!!

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  23. heftysac

    yahoo’ers getting obese on free lunches getting old

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  24. buylo

    didn’t you say at the end of August that we’re goin down in Sept? uuupsie!

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  25. Alf

    How did you know my dog is gay?

    Down Spot! Quit humping my leg!

    Bad boy.

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  26. GYSC

    Read “Under the Dome” and it is easy to see whats up.

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  27. The_Real_Hmmm

    Backyard grill getting cold?

    QE2

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  28. Cascadian

    You want know how to get a dog to quit humping your leg?

    \/
    \/
    \/
    \]/
    \/
    \/

    Pick him up and give him a blow job.

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  29. The_Real_Hmmm

    License and registration?

    QE2

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  30. JakeGint

    Speaking of dogs who might be gay, Good Night, King of the Bronx!

    _____

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  31. JakeGint

    Handsome young duke looking to marry into the throne, no matter how beaten with the ugly stick is the current occupant?

    QE2.

    __________

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  32. alphadawgg

    This whole notion of QE2 is misguided and very wrong. Chopper Ben knows full well the consequences of expanding the Fed’s balance sheet. He had a PhD….and a beard. Do not question the wisdom of his ways.

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  33. Bearish

    Warning Signs…..

    Anyone following the markets knows the drill by now.

    A bad economic report comes out (e.g. consumer confidence) and the market plunges 1%. An hour later, there’s a magical reversal and suddenly, we go to new highs for the day, which “sticks” until the close.

    A huge IPO gets pulled (Liberty Mutual) due to bad conditions – the market sells off at the open, and goes down about 3/4%. Then there’s a magical reversal and we go to new highs for the day.

    Trucking volumes collapse and are reported. The market sells off, and then suddenly, there’s a magical reversal and the market goes to new daily highs.

    Merideth Whitney comes on the air and says that regional banks are cooked – their revenue model is broken and the collapsing yield curve will crush them. In addition, trading volumes are down at the major investment banks, so that will cream their earnings. BANK, the Nasdaq Bank index, takes off on a literal vertical tear as soon as she says this, rising by more than FORTY POINTS in an hour.

    David Tepper says that if the economy is good, the market will go up. If the economy is bad, The Fed will print more money and devalue the currency, and the market will go up. Nobody questions the obvious disconnect (since when can you borrow your way to prosperity, or debase your way there – and in what instance in history has this ever worked?) but the magical buy-fairy shows up and the markets scream higher, rising nearly 3%.

    Does anyone remember 2007 or early 2008?

    Bear Stearns blew up and the overnight futures were essentially lock-limit down. What happened right after that? The magical buy fairy showed up and we went to recovery highs – nearly 200 handles above where we were when Bear exploded.

    Anyone remember “Buffett will buy the world”? Was anyone ever prosecuted for all the false rumors that moved the market 1 or even 2% in the last hour of trade – those rumors always seemed to hit CNBS when the market was down 1% or more and threatening to break some key technical level. Suddenly, an outright lie would be “disseminated” and the market would violently reverse.

    How about Dick “I’m gonna burn the shorts” Fuld? The market roared, right? For how long? And was he right – or was it Lehman that burned?

    Look, you can blame manipulation, you can blame The Fed, you can blame whatever you want.

    But what I know from more than 10 years of trading is this:

    When the market starts to act like this – when there’s this “invisible hand” that magically levitates things, when people resort to disseminating outright lies about the market or specific companies and do so to counteract actual bad news that would otherwise result in moves down, it is a sign of desperation – there are people with money and power who are on the wrong side of the bet and they are willing to deceive you and rip you off outright to avoid being the one with the bag.

    Do with that information what you will.

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    • alphadawgg

      Those people are called politicians. Don’t want to name names, but just know they are all jackasses.

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    • wilmer

      Nice post!

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    • Keyser Soze

      Yes, but it’s a cut/paste from another site. Zerohedge, MarketTicker… can’t remember.

      I would say it is in poor taste to steal, but hell this is the internet – I guess anything goes.

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      • Bearish

        I didn’t say that I created the article you Knob!
        I just thought it was a good artricle to post!
        So go Fuck Yourself!

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        • shaz

          Without giving proper credit to the original source, you ARE saying you wrote the article…dipshit

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          • Bearish

            I appolgize, you are correct!
            Now go Fuck yourself as well!
            Thank-you!

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          • go2mars

            Cut and paste with no source. You’re one of the reasons decent journalism is dying.

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          • Bearish

            Cut and paste with no source. You’re one of the reasons decent journalism is
            dying.

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          • Bearish

            Hey FucKtard!
            Tell me you came up with those two sentences on your own!

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  34. Bullish

    You wake up oneday to find numerous impostures using your name.

    QE2

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