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
23,444 Blog Posts

What a Catastrophe!

Wow, AAPL is down a whole 2%, following disaster-filled quarterly results. The real news is the dollar, which is ripping tits, lending to the outright devastation of the pseudo gold standard. Needless to say, I believe there is money to be made short gold stocks. My favorite is AEM, due to its size and stupid nature.

The reflex rally in the dollar can last a long time, regardless of the fundamentals. There is so much hot money out there short the dollar, should they get squeezed, it can get very, very ugly. That’s the problem with free money: everything is distorted. It’s the reason why NFLX is above $150, Hong Kong real estate is in a bubble and why oil/copper are in the stratosphere. When the music stops, everyone runs for the small, narrow exit aka “the funnel”, effectively trampling over one another—crushing skulls along the way. That’s what can happen to the dollar, with a little push of course.

As for stocks: we are barely down 1%, so I am not excited. Yes, I believe we should trade lower. However, this market is all about defying the basic principals of fundamentals, so who knows where it’s going next?

Breadth is terrible. The mood is somber. Stocks are richly valued. QE2.

Your call.

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16 comments

  1. Yogi & Boo Boo

    Indeud.

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  2. scott

    Take some profits, raise some stops, chill…

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  3. WTF

    BenB has warped the laws of gravitation.

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  4. Optimistic BEAR

    If the dollar isn’t done getting crushed medium term so we’re heading higher again. 1200 on the S&P feels like a magnet. Elections are coming and QE2, so how much of a retrace can we really have without computers and (M)POMO money cutting noses off? 1150ish? I don’t see it. 1163 maybe and then we blast higher to burn the shorts. We need to suck the shorts in once more and kick their bowels out before making everyone perma-bulls and roasting their hides on a spigot in a big post QE2 crash when the dollar finally, finally bottoms and EUR/USD rips off faces in the opposite direction. Our yen masters are just about done watching their country’s exporters load guns for the ensuing corporate-sponsored martial law anyway.

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  5. FIG

    Imagine owning SPXU and waiting for a month for a down day on the market, then when you finally get a down day, SPXU trades down 2%. Mind you, SPXU is supposed to be 3x inverse of the S&P. Looks like I found the best short ever. It will trade down no matter what happens.

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  6. Mr. Partridge

    One day doesn’t make a trend, unless… it is very bad day 🙂

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  7. Rand

    I wil have the double quarter pounder meal, and give me the winning monopoly piece, please?

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  8. genghis khan

    In France, if Sarkozy just so much as threatens to raise the retirement age and people riot in the streets. Here in the good old “US and A”, people get kicked out of their houses by the wrong bank and they’re too fat to walk to the curb, instead, they get into their excursions and go to the drive through. This country is turning into a casino. f the US were a stock, it’s symbol should by wynn.

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    • A Monkey with a Taste for Good Hoes
      A Monkey with a Taste for Good Hoes

      USA stock symbol = TARD

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    • drummerboy

      idiots at cnbc asked the Q this mourning.” should congress raise the retirement age”.if there were a mechanisim where you could push a button and send an electric shock to the pundit asking the question,and the 2 idiot talking heads they brought on to answer the question,i would have held that button till the closing bell………assholes,they are wanting to “churn” the fear of,or by, putting the Question in play. as it is,there are too many people working beyond retirement just to keep above water. sarkozy,dont you know he already told his people that the U.S. waits longer than them to collect. and in america, most people dont even know our european counterparts get 5 weeks paid vacation, and every holiday off with pay and as well as other perks.i say lower the us retirement age,this will only lower the unemployment #’s.

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  9. Trading_Nymph

    You know, if Steve Jobs wasn’t on the call imho I don’t think it would be down so hard….I was laughing last night so much about his bitchiness……will today finally be the day we Roll….as you know from my weekly analysis I have been waiting for weeks for it to go thru that funnel…breadth supports the move down big, but I guess I will just have to wait to see what the big boys do this afternoon…btw Fisher I think is making a speech right now, he’s hawkish on QE but non voting.

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  10. xxxHuggieBearxxx

    short oil, silver, gold….not for long but could get 5% or more….

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  11. Options Ninja

    QE2 will provide ipads for the homeless and steve jobs will bail out the FED.

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  12. YoZone

    If you wanna QE2 it you gotta keep your eye on the ball and be really really quick

    http://thedogpaddler.com/RandomUploads/Ball/ball.htm

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  13. Trading_Nymph

    I was just going thru the Morgage issue……this is getting DARN SEXY HOT for me…..there can be allegations of Fraud here…..you know what that means, Sexy Intentional act…Punitive Damages….ohhh baby….ohh baby…..just having Foreclosures stopped may only be the start of the problems for banks….this could be giving hard ons to a lot of attorneys that are thinking Class Actions…Chess if your around…what are your thoughts …along with any other fellow Legal Eagles around here…my post is NOT legal advice, but stock comment….better put that in….I am so glad I am messing around here then wearing the monkey suit…don’t miss those days at all.

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  14. silentmax

    damn right hong kong property markets are ludicrously high i tell you maid fricking maids and bus boys bought condos people buying up properties through their extended family names to bypass the rules
    singapore and china also all up into that mix. god dam they will all blow up i tell you

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