If we are to continue higher, we must not give up yesterday’s gains. The banks need to hold, led by BAC and GS. And, Italian and Spanish 10 yr yields must hold under 5%. That’s the obvious. If those things happen, and the economy doesn’t drop off a cliff, commodity and technology related stocks will lead the way higher.
High beta names like DECK, LULU, AMZN, NFLX, BIDU and AAPL should outperform. There are many other high beta names worth buying; however, those are just a few that come to mind.
In the banking sector, I like SBNY here. They do not have the toxic assets that plague the other banks because it’s a new bank. They are taking market share in NY and is a prime takeover candidate. In the semis, I like IPGP, in retail DECK and in oil and gas I prefer CXO and WNR, just to name a few.
But all of this shit will be worth nothing if we can’t crawl out of this faggot box we find ourselves in, no offense to gay guys of course. The up and down nature of this market has people sick to their stomachs. Retail investors have fled from the landscape and now the fucking robots are ruling the roost. Larger than life firms like Blackrock, Fidelity and Pimco dominate this market and can literally make or break your favorite stock.
Why was DECK knifing lower, or any other high quality name, over the past 3 weeks?
Answer: survival.
Hedge funds and money management firms needed to sell non-core names in order to “outperform” the S&P. I know it sounds retarded; but these idiots are THRILLED to be down 10%, providing the SPY is down 12%. The whole name of the game is to beat the pace rabbit, which is the S&P 500. If you really want to fuck with these funds, you take down AAPL. Then you will see panic and despair.
In summary, in true retarded form, the names that clubbed you to death on the way down will be the names that resurrect you on the way back up. These same managers will buy in, when “the coast is clear,” whilst snorting a table full of cocaine off their bloomberg terminals.
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FIG
NOT!!!!!!
I don’t think the coast will be clear for quite awhile.
The famous words of the guy who misses out.
Yep!
Great post.
Spot on.
Great line – “a table full of cocaine from their bloomberg terminals”
That line got me laughing as well.
“Faggot Box” (Not that there is anything wrong with that)
Put it in the iBC Dictionary (if it still exists) with a reference to “Homosexual Opera” (not that there is anything wrong with that).
Faggot box. Good stuff
On another note I have to attend a ball tomorrow night, just wondering if bow-ties are allowed now that gold has been homo-hammered?
Bow ties are good and so is a clip on tie with a ’70s style leisure suit.
Must have been an angry lesbian who gave me a thumbs down.
No, it was this guy…
http://i617.photobucket.com/albums/tt254/dafeedil/gifs/tumblr_lj7akes4w71qafrh6.gif
dont care if we are entering a recession or not anymore. that is just noises.
i am seeing big funds like fidelity and blackrock deleveraging from high P/E names right now. Valuation is being reset. High flying P/E clowns will get raped even if we trade in a range for the next 5-6 months.
If GLD breaks $173, market should rip higher.
“should”, that’s a dangerous way of thinking.
If we have a sea change to bullishness I like financial that fell the most and some of the murdered materials stocks.
Thing is, I am skeptical that bernanke will act huge, he got too much crap for it last time. The Europeans seem intent on self destruction… what will cause the sea change? Valuations?
I can see safe dividend stocks levitating in a downturn…
I agree that the high beta names will rip if market holds…
…but the hedge fund guys are not happy with down 10%…that means no bonus to buy beach houses, boats and boobs…the 3Bs.
mutual fund guys don’t make any coin.
btw: fuck gold
The market has become the anti-Paulson market…
From the data I’ve been privy too, retail investors have yet to flee this market. In fact, they are buying the dip as they have been well trained to do, and I think August 8th (+/-) was the only day when retail sellers outweighed the buyers. Nonetheless, Skynet does indeed run this market now.
When I’m constantly confronted by retards that want to buy BAC for the “long term” because “it can’t go any lower,” I can’t believe that we’ve found a real bottom yet. But I’m happy to trade whichever way the market is going for the time being.
I work for a “rather large” retail fund shop and i’d classify the behavior of the little guy as. “Get me the fuck out” based on the flows data for August. No dip buying seen from my perspective.
Thanks Chango, I always appreciate another perspective. To clarify my previous comment, I didn’t mean to suggest there weren’t plenty of people permanently heading for the exits (mutual fund flows alone would suggest this), but rather on net I’m still seeing the public buying stocks.
What’s the difference between a stock trader and a food stamp recipient?
None-theyboth depend on government hand outs for their existence!
The leprechauns are liquidating their GLD
TLT getting killed too…also bullish for stocks.
10 year yields up 5% today. we are going higher.
Given the path of Irene, I may have to drydock the Orca for the weekend in Montauk.
Be sure to visit lovely Mastic / Shirley !
http://youtu.be/zyejhWpEFtY
Rally will give it up, and more, Clam won’t be able to get it up.
Wrong! The Clam will “F” you bears sideways. Wait and see.
We will see….but he has been wishy washy since the NFP was bte about 4 months ago and Core CPI rising…Me and the US Dollar battled him Mortal Kombat Style and I have his spine in my hand now, and with that spine gone, the Clam is weak. Sell off in Gold is the first step in the reversal of the inflation trade.
Listen up little girl,
It’s nothing for a true gangster like me to cold cock a bitch. I’ve done it before, I’ll do it again. One more word out of you about having my spine in your hand and I’ll kick your teeth down your throat.
Got it?
The last time Wall St was hit by an earthquake and a hurricane in the same week it rallied 50%!
My Mama told me there would be days like this.
FLY, if Fed doesn’t mention QE*, will you go net short?
The huge sell off in bonds and gold is telling you the maket is pricing in no QE.
I would be shocked to see it. Easy money is on hold until further notice.
I overwhelmingly suspect that qe3 wont be announced. What I am less sure of is reaction.
The selloff is arguably overdone, barring something not yet panicked about.
I sold my silver shorts about 3 minutes too soon. I need bigger balls. My next no QE play is long dollar vs yen. My bet is the media will eventually focus on Japan’s woes, much like they are currently focused on the Euro-zone troubles. Japan has horrible demographics and the worst debt/ gdp on the planet.
I agree. I went long 75% yesterday to try and eek out 3-6% on a reflex rally. Good to see solid durable goods orders today in the face of HORRENDOUS Fed manufacturing numbers from eastern districts.
I’ve been researching the shippers recently because although they are trading well below tangible book value, in some cases they are approaching salvage values of their vessels. This is even assuming low prices like $150 per light-weight ton for complete liquidation (literally) of the ship metal. I still have to run the numbers but we are approaching a near risk-less trade from my vantage.
Anyone remember at the end of last year when all of the regional banks were going to be bought up or merged together in spades?? Stocks like STI, RF, and OOPS, looked what happened.
Fly,
Thanks for the insider insights. That’s the kind of post other blogs are incapable of.
PS
Coincidence that gold (is NOT money, except in Utah) and silver just happen to be homo hammered prior to Friday’s clambake; I think not. Why didn’t I see that from a mile away? Too poor too pay attention / busy with my 7-12midnight job.
Suggestion: Start reading the other blogs in this group as well.
_____
Classic Fly! Great insights as always.
AAPL and high beta do not belong in the same sentence.
Way to jinx Apple jackass!