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
19,125 Blog Posts

It’s About to Get Even Uglier

The House of Saud is giving away $37 billion dollars to placate its citizens. What the fuck!? Is Ben Bernanke giving them advice or some shit? You don’t give away anything. Tyrants are supposed to order jets to drop bombs on protesters, not flower them with coin. This will not go over well in the middle east. They will view it as a sign of weakness and desperation. The plebs will curry to eat the King’s liver. I realize if the crisis ends, gold,silver and oil will take a hit. However, what if it escalates?

If you are short stocks, what if the crisis ends? You will get your dicks cut off is what will happen. I insist, with the stubbornness of 10 cement heads, being long gold, silver and oil is the way to play this bullshit. However, if your stocks are underperforming, sell them immediately. Get long stocks that are responding to this nonsense, sort of like how I swapped out of ATPG for CLR and AG yesterday.

The oil sector is much stronger today, as investors start to understand how stupid they were for selling yesterday. This is NOT about price of crude. This is about access to reserves. Should Saudi oil go offline, the world is fucked. Those in possession of oil will be “rich as fuck,” while the world burns. You need to get with this end game shit, else lose your house.

As for me, I will be monitoring the egregious events in the middle east, like an Israeli spy.

Top picks: APC, CLR, AG, EXK, NGD

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67 comments

  1. panamaorange

    Emerging market etfs EEM and VWO have more volume (combined) than the SPY .Both are green,and holding November “Korea panic” lows. So, I have to agree, you don’t want to be pushing new shorts here.

    The only man who can afford to short into every low, and buy into every high, is Dennis Gartman.

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  2. Quint

    Yes, but how does Big Ben get the price of oil down so that fund managers don’t panic about an oil shock recession and sell everything?

    I know you’ll say QE3 – but not with people protesting in the streets of Cheese-head-ville.

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    • drummerboy

      this one is out of the bernanke hands,and i insist,with the stubborness of 10 cement heads…………..mother fu-ly made my sammich taste better this lunch, as i sneezed it out of my nose lol.

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  3. HangLow

    Nice post FLY

    You remain the worlds greatest blogger. No one even comes close.

    Im surprised Howard hasnt thrown some of his old school “stress relief ball” money at you to be a part of his team over at Stockdicks.

    Play on playa……play on.

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  4. xxxHuggieBearxxx

    I need one of those very seriously egregious 2% melt-up days stat. Would be nice if Muamar would just step down in a surprise move.

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  5. Cascadian

    Losing my house would be a blessing. I could rent a nicer place for the $. Real estate needs to revert to the mean. Get a little construction going. It would help the unemployment picture.

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  6. Quint

    The Transports – the leaders on the upside, are now the leaders on the downside…talk about an ugly chart.

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    • bacon wrapped butter samich
      bacon wrapped butter samich

      Thanks for pointing that out. They are often the canary in the coal mine.

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  7. Quint

    How far do my stocks have to fall before those Flash Crash rules stop them?

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  8. asteroids

    The House of Saud won’t fall. Go to Wikipedia and look on how they have handled the death of the King in the past. They have thought about it. No Libyan shit. Of course, should the slaves revolt, it’ll be like 1976 all over again. I remember those days, they weren’t pretty.

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  9. Prospectus

    Wait, if I’m short, you’re saying BOTH of my dicks will be cut off?

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  10. Trading Nymph

    You know what is really amusing the heck out of me, With a falling Market, Chinese Govt just really doesn’t care at all, upping the % that the State own biz have to give back to the Govt from 5 to 15% is in a sense upping their taxes. http://www.china.org.cn/business/2011-02/23/content_21980793.htm

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    • trashed

      Inflation

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    • Cascadian

      If the State owns the business, then keeping 15% of profits does not really sound excessive. I would hope to keep more than 15% of the profits in a business I own. Anyway, it’s a 5% increase, from 10% to 15% if I read properly.

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      • Trading Nymph

        Cascadian, Sort of unclear…in the mid point of the article it says SOE’s paid 5-10% before, but yes, I do see your point. Either way its money that would have gone back into the company, that will now move over to the Govt for their spending needs and ability to pay back to shareholders that aren’t the Govt.

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        • Trading Nymph

          and “decrease the ability”, I wish Fly had a edit function on comments.

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          • Trading Nymph

            Cascadian…I love when I screw up, ok, here is how it breaks down, The increases actually vary . Looks like chemical, , tobacco,oil, telecom, energy will go to 15% from 10% and Miners, Steel, transports will go from 10% from 5%…and Military equip, research will go from 0% to 5%….the talk of this increase was around before, I just missed it earlier, but today China Govt wanted to stick it in their press, fwiw..

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          • TheV.King

            Great post and response…Very insightful…you really need to blog here more often. I love long winded explanations and your results speak for themselves. I’m surprised the Fly didn’t “tab” you in his last go around…

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      • WTF

        Chinese Government issues their own currency, they don’t need extra currency from the businesses they own. What they are doing by this measure is limiting spending power of the private sector and thus fighting inflation. That’s it.

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        • bacon wrapped butter samich
          bacon wrapped butter samich

          They are also redistributing. More to military for example (which has no independent revenue stream).

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          • Po Pimp

            Please do not doubt the Nymph. She’s been following this shit for 2 years now. It would be devastating if people with just a casual glance figure it all out quicker.

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  11. Quint

    TLT – breaking it’s downtrend – 3% mortgages for everyone!

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  12. tgarfield

    Time to short apple.

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  13. Teahouse On The Tracks
    Teahouse On The Tracks

    Why not Canadian oil sand stocks … SU, COSWF?

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  14. No One

    Crude Mania

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  15. No One

    Crude to $200. GS prophecy must be fulfilled

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  16. Colonel von Ryan

    Stagflation folks – more insidious than deflation which is what Ben has focused on. Look at the 70’s S$P chart – 6 years with no growth. None.
    High unemployment
    Slow growth
    Rising prices
    Higher taxes
    Weak President

    Sound familiar?

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    • The Fly

      WHO IS JIMMY CARTER?

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      • Teahouse On The Tracks
        Teahouse On The Tracks

        Correct, you maintain control of the board!

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      • Jimmah Carter

        Ya’ll talking to me? And take it easy on those dictators Fly. They are quite peaceful when you get to know them. Well, gotta go. My Buddy Chavez wants to talk business with Hamas, a fine group of people.

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        • JakeGint

          The best thing about this satire-avatar is it brings out the die-hard Lefties who are still sticking up for Jimmah Carter, perhaps the only ex-US POTUS who got WORSE after he left.

          And he was pretty damn bad while in office! Now he’s like Michael Moore with a bariatric staple job. Who stole his brain?

          ______

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          • Jimmah Carter

            We can talk next time you are in Plains. And bring Steve The Neighbor. Neither of you are Zionists, I mean Jewish, are you?

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  17. Quint

    Market trying to make a stand…until 3pm

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    • Trading Nymph

      1 pm 5 year auction, which was really strong last month. Plus, AAPL shareholder conf of course starting at 1 pm. SPX has to hold 1304 level and AUD/USD has to hold 1.0000…we are jumping around those key supports and market will probably wait and see if they can rally off the 1pm news imho.

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  18. Alvari40

    So, you are saying that this doesn’t end….right?

    What grabs me in the nads….hard, is the fact that I sold 1/2 of my gold (the hard stuff) to a Canadian firm 2 weeks ago for $1,280 per. Nice. I still carry1/2 of my holding in eagles.

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  19. Col Muammar Gaddafi
    Col Muammar Gaddafi

    I respectfully request an audience before the Honorable Fly, he of iBC fame. I will need asylum and I was directed by Robert Mugabe, his ass holiness being the head of Zimbabwe, to contact you based on your reputation as a rebel. I will bring my lovely bodyguards and we will fetch your coffee and pizza and hot oatmeal. I love Dunkin’ Donuts, too. Especially the donuts with he sprinkles. Please advise ASAP. I can land my copter on top of iBC Headquarters.

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    • JakeGint

      Brilliance. Is this TC AGAIN??

      ________

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      • Col. Muammar al-Gaddafi
        Col. Muammar al-Gaddafi

        Who is this TC that you speak? I do have a very lovely bodyguard with the initials TC, Takiyah Cantara. Very fine behind the veils.

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  20. drummerboy

    you worry too much about something that will not happen. in saud.unlike ANY kingdom or government,takes care of their subjects with more milk and honey,than should be allowed, by any mere mortal. to have life any better just short of 13 virgins in haven…………as ass back ards as they are,at least they believe in ,oh, here it comes, wait stop,………..PROFIT SHARING. oy vay……… they are just getting paid more for turmoil and speculation………….

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  21. norcal

    UCO ripping tits again…as I thought it would.

    Could it be that a Middle East Armageddon is upon us…if so, this decade could be a replay/rhyme with the 1970’s when we last had an oil shock. Gas prices skyrocketed. In California we had gas station lines, gas stations ran out of gas and we had odd/even days of when you could buy gas. Inflation skyrocketed. Interest rates skyrocketed. Time to pull out the 1970’s playbook….

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  22. rookie

    thanks fly…. sitting on the sidelines is also another option until shit settles. made my trade for the year already with the move in crude, time for a vacation 🙂

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  23. bdubz

    BZ…. WTF?!?

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  24. Rip Van

    How come Khadaffi is spelling his name Gadaffi now ?

    Pesky collection agencies ?

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