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
23,434 Blog Posts

PANIC

The Italian stock market is not updating, after dropping more than 3.5%. Most markets are off by 2% and U.S. treasuries are soaring. I cannot predict how this will turn out in the near term, as human emotions tend to run wild during periods of duress. All I can suggest is to make sure you are not leveraged and try to avoid buying junk.

I’m getting my cock chopped off here, with WNR knifing lower, alongside a variety of other positions. Like a stock market imbecile, I allocated 30% of my cash into this market yesterday, just in time for the shit storm. I am not having a good day.

I’ve managed to survive all sorts of markets, even come back from the dead when I nearly lost in all in 2000. During the 2008 market melt down, I was positioned short and was able to turn the ship around for the 2009 long trade. Last year, when QE1 was ending, I was heavily positioned for a decline, betting the Fed would not initiate QE2. Furthermore, I felt even if they did, it wouldn’t matter. I was taught a very valuable lesson back then and care not to repeat those lessons.

When things looks thew bleakest, most horrific, is when the buying opportunities arise. Of course this could be different, especially since there are whole country’s failing. However, NOTHING goes up in perpetuity or down. We may look back on this period as a significant buying opportunity. Or, we may look at it as the beginning of the unraveling of the markets.

We all make our beds and lie in them. Right now, I am down over 4% for the day, nearly fucking myself to death in a variety of risky plays, yet here I am blogging like a fucking moron. I have work to do and it might not be pretty. I might sell or I might buy. At the end of the day, I am a survivor and will make sure I live to fight another day. My gains are still double digits, year to date, and I can risk a little bit more down here. But it’s fucking hard, Ringo, real fucking hard.

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63 comments

  1. Mr. Cain Thaler

    Pulp Fiction…nice.

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    • Anton

      Nope, he was quoting John about what it was like to wake up next to Yoko every morning.

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  2. bearjewatl

    Dr. Fly, you are an active options trader…. are you taking advantage of weekly puts on index ETF’s and TLT calls in your personal account?

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  3. alf44

    Market being fed a Satin Sandwich today !!!

    .

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  4. Juiceyfruit

    Gary Savage thinks the market will bottom today or tomorrow, fwiw… he is a smart cookie … so you’re in good company, Monsieur Le Flea.

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  5. en1gma

    No stop order on wnr?

    We went straight up for two years on govt pump. The well is dry. We can go much lower.

    Bernqnke is losing control of the situation.

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  6. ruggyup

    Sitting here smug as shit thinking how cool it was to ignore the mean reversion trades on the Dow and Russell touted a couple of days ago.

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  7. ALLPROz

    Manup time … Blood in the streets … Start your positions good sirs ..

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  8. TraderCaddy

    I have always found vomit to be the perfect indicator for a bounce in a down turn.
    Dr. Fly. Please advise when the vomit bucket is full.

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  9. Mr. Partridge

    welcome to my office… long GLD and only GLD

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  10. The Plumbers Crack
    The Plumbers Crack

    Great post Sir Fly.
    Thanks for sharing your experiences.

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  11. Josh

    Great post Fly.

    Report: Obama Administration Added $9.5 Billion in Red Tape in July
    House and Senate conservatives are reviving their battle against federal regulations, claiming that the president hasn’t stopped issuing job-killing rules during the debt ceiling fight. “While Washington and Americans have been focused on the debt ceiling, the Obama administration has continued to roll out more crushing red tape,” said a spokesperson for Wyoming Republican Sen. John Barrasso, who’s been championing the regulation fight.

    At Tuesday’s GOP Senate caucus lunch, the lawmakers said that they will renew their efforts, supported by business groups like the U.S. Chamber of Commerce. In a memo Barasso handed out to the lawmakers, he claimed that the administration in July only has put in $9.5 billion in new regulatory costs by proposing 229 new rules and finalizing 379 rules. Among those he cited were EPA, healthcare reform, and financial regulatory reform rules.

    Obama Doesn’t Work

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  12. Green Machine

    No fucking way the world will let this happen. My prediction: This Friday sell off will be turned around over the weekend with some good news.

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  13. Dr Genius

    lol we will probably sell off hard tomorrow also. it is panic now.

    all central bankers will meet over this weekend and get something done to bring some confidence back to the system.

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  14. Green Machine

    There are only two ways to book a loss:
    1.) Investing in a shit company that goes belly up
    2.) Selling low

    I am pretty good at avoiding #1, so I am definitely not going to commit #2 on a day like today. I am waiting to catch marlin, not sardines.

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  15. j

    People

    I could be really wrong about this, and note I have been really bullish since 09. But I think this is it as far as Europe goes and with that i think it means the the US and the rest of the world too.

    There is no fucking mechanism in Europe to handle this clusterfuck. They are refusing to deal with it in any way to create a quick resolution so the market always gets ahead of them.

    Spain just cancelled it bond auction today.

    The only way around this mess is for Europe to being QE and to start guaranteeing each others bonds.

    If they don’t do that life as we know it is over.

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    • SUBCOMANDANTE CHINCHILLLLA!!!!
      SUBCOMANDANTE CHINCHILLLLA!!!!

      Agreud.

      This is the bridge scene in Apocalypse Now.

      Willard- who’s in charge here?

      Soldier- ain’t you?

      —-

      No….

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  16. Ron Paul is back
    Ron Paul is back

    Ur a brave man fly! This rally will start soon. day to day fluctuations can be random, but the start of energy building rampant wild buying machines are starting soon. This market is still controleld by the retardedly long and money printing and circulating the markets. The pro’s are gong to sell gold and treasuries and buy this market. A matter of fact, they have been all morning. This is called the suckers last day.

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    • FIG

      And how do you know that? There has been virtually no uptick for over a week now. I’ll tell you one thing, the bull market is officially over. We can now go back up a bit, but all rallies will be faded. I bought GSVC today because I figured this was the last stand of the bulls on that stock. We are at the lower bollinger band and the breakout point. If this fails, it is going back to $12 in a hurry!

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      • The Hippy Dippy Dip Buyer
        The Hippy Dippy Dip Buyer

        ^^^^ Found another one! ^^^^

        If the band snaps, and stops singing, then we are cursed to fall another X%!

        Bring forth the logic.

        -Happy

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      • Po Pimp

        You bought GSVC because you think it’s going to drop to $12? Do you work for Bill Miller?

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  17. go2jupiter

    from 1 pimp to another:

    good luck

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  18. BIg Wee Wee

    Professor Dr. Fly, M.D.

    DJI down 300. Should I average down, sell, or just sit here like a slug.

    Thank you

    BWW

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  19. razorsedge

    50% gld 50% cash since yesterday…

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  20. Ron Paul is back
    Ron Paul is back

    Buy this dip, this is my 75% long today. I predicted that this would be the 2nd scenario. Every1 is bearish now and questioning their positions. Don’t be scared my children, Remember the wisdom i Carry

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  21. Quint

    Fly, just think how much you are outperforming the indices YTD…the Institutional guys will love you.

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  22. dr sanantonio

    Perhaps tomorrow’s jobs report will help….or not.

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  23. BIg Wee Wee

    GSVC ‘s pain today feels like that time when I accidentally put Icy on Hot on my balls in 1998.

    DJI Down 360 down.
    Still waiting for Monsieur Professor Doctor Fly, MD, PhD to guide me because I keep watching CNBC and its scaring me.

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    • FIG

      Actually, it is barely down. GSVC hit a bottom if $15 four days ago. Since then the market has dropped precipitously, and GVCS stands at $14.71. That is nothing to worry about, YET!

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      • BIg Wee Wee

        Don’t minimize that day in 1998 when I had accidentally put Icy Hot on my balls ever again.

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      • TraderCaddy

        Stop watching CNBC.
        Subscribe to MLB hd (a couple games on this PM) and watch baseball.
        Or go watch some porn.
        You will feel better with either.

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  24. coin

    FLUSh fuck

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  25. mememe

    Time for someone to voulnteer to suck themself

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  26. bravo

    All of this feels rather coordinated. The question is why?

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  27. Ron Paul is back
    Ron Paul is back

    wtf is every1 so scared of. All we did was go lower than yesterday’s low which to me, means BUY. I expected this with upmost clarity. This is simple my friends. It’s obvious ur all scared and worried now, wen instead shut off that emotional fear and buy. SIMPLE!

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    • bravo

      There is real reason to be concerned. Don’t try to sound so cucumber cool, though you may be right. Even Gold is taking a little whack. Have we bottomed? Who the hell knows, though it does feel like panic indeud..

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  28. Ron Paul is back
    Ron Paul is back

    BUY BUY BUY, Put ur house up for sale. All i freakn know is buy! If ur algorithmic or logical, just FREAKN BUY! This is so freakn dirt cheap right now it’s laughable

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  29. BIg Wee Wee

    Because of this market I just started smoking cigarettes I had stopped for 3 years.
    Just bought MO and PM stock. Along with Diageo.

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  30. Ron Paul is back
    Ron Paul is back

    FREEEEEEEE MONEYYYY. FREEEEEEE FREEEEAAAAKKKNN MONEY!!!! WAAAAKEEE UP!!!!! IS EVERY1 BUYING EVERYTHING?

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  31. Ron Paul is back
    Ron Paul is back

    I want a RALLY CRY once we are up over 100 points from the low!

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  32. FIG

    It’s funny that Fly calls for panic. Yet, there doesn’t seem to be any panic in the market. This is a very orderly sell-off. Just as orderly as the run-up was. I don’t think that is a good sign at all. We could drop another 100 S&P points over the next week and it wouldn’t even seem like a panic.

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  33. drummerboy

    wtf. might as well go out and stick a jp morgan branch,they have all the coin.

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  34. drummerboy

    sorry should have read,”stick up” a jp morgan branch

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  35. Ron Paul is back
    Ron Paul is back

    Wake up guys, The Euro Crisis won’t end in one swoosh. This Sh*t will drag out for year. Buy fear! These are all excuses! Remember that the market needs an excuse to dip. This is buy all you can discount at f*ckn SEARS right now. Shit prices are already low, and now its even lower.

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  36. riggedgame

    The only thing that will help now is QE 3 with Bernanke ANNOUNCING it on TV.

    There is no downside to this – and no downside to printing US dollars left and right.

    In fact the USA should announce a 25% DOLLAR DEVALUATION.

    The fuckin’ “budget deficit” means NOTHING.

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  37. EN1GMA

    The FLY is the man

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  38. FIG

    I am calling a bottom! Gold has started to sell-off now, that has to mean something… Right?

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  39. The Fly

    So tempted to buy here. No dice, however.

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  40. BIg Wee Wee

    Pulled the trigger am now 100 % LONG
    This may be incredibly genius or incredibly stupid.
    Time will tell.
    Dead cat bounce is imminent.

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  41. Hermes

    Time to trade like a boss http://thinkprogress.org/wp-content/uploads/2011/08/1025169906.jpg

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  42. Trading_Nymph

    Stupid Shanghai Copper Bubble….all bubbles pop in time, and they are ugly.

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    • go2mars

      How many years off in timing does it take until the category changes from “early” to “wrong”?

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  43. FIG

    DAMN! WNR getting repeated cocks to the throat! holy shit what a sell-off there!

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  44. dishobgyn

    http://www.youtube.com/watch?v=LyJDH60oREc

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  45. drummerboy

    we need to see some asshat jump out the window first before i’ll buy anything. this shit is far from over.the market is talking but no ones listening…ssssshhhhhhh..can you hear it, it’s saying ” your all fucked”. carry on

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  46. mike

    right after Fly sold FAS, I did a put on it. Up over 330% since then….

    everything else is getting shredded though, even my gold and silver

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  47. Apocalypse Now

    Mark my words, I rarely communicate, but when I do you had better listen.

    Prices had to be lower to justify QE^n for the next Jackson Hole iteration (what inflation?)

    The July 4th 3 day weekend rally call was epic, and I am calling a Labor day rally IF we stay lower this month, B.B. makes statements affirming support while taking it to the Hole, and the PPT suggests oversold leading up to the weekend. This is the setup I’m looking for, and we rallied hard going into labor day last year.

    Bankers still firmly in control and funding O’s re-election campaign – this means they need to support the market if they want him to win in November next year. Price is what they say it is with round tripping between computers.

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  48. razorsedge

    does goodwill or salvation army have a ticker?

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