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
23,417 Blog Posts

Weakness Begets Weakness

I got lucky on my USG sale. I think the analyst who said wallboard pricing is biased to the downside is very short sighted. Longer term, USG will do fine. I only sold to protect my gains and raise cash.

Through today’s sales, I am now in a very neutral position, 50% cash, 10% short and 40% long.

VHC cratered because it could and the market is heading lower because it can. It makes no sense to investigate the rationale for the decline, whether it be rumors of an Italian debt downgrade or defunct bank in Spain. The simple fact of the matter is, news is only a temporary condition. What’s important to remember is the institutionalization of too big to fail and supporting the stock markets, worldwide, by any means necessary.

That is the mantra and the official policy of every central bank in the world. Having said that, the markets are permitted to decline 5-15% every so often, to feed the tree of misery with the blood of the less fortunate. I’d be a fool not to lock in my 23% gains and coast until Fall. There’s no reason for me to trade like a wild jack-rabbit.

For money?

I don’t care about money. Trust me, I would care a great deal if I didn’t have any. But my principal motivation is being right–always has been and will be.

Look at today’s biggest losers by industry.
Down

What’s wrong with the picture?

Silver shouldn’t be on that list in a weak tape. The dollar is up, bonds are up and risk is off. This tells me silver and gold are no longer being used as hedges against risk. There isn’t to be any respite given to the longs of silver miners.

Pay attention, as the market is spiraling higher now on another temporary phenomenon, silver stocks are decidedly lower.

I just doubled my short position in AG.

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7 comments

  1. clegger_2000

    So you trade for the “action” as well as the cap gains?

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  2. Bullish

    What was the name of that dipshit that always said, “I like to be long of gold… or long of silver…. I like to own things that hurt when you drop them on your foot”?

    Wonder how his newsletter is doing these days.

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    • The Fly

      Dennis Gartman

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      • JTU

        He also said this morning that the European solution was nothing more than duct tape and promises.

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        • Heaterman

          While the overall message is as you say good sir that, tbtf and market support are now ingrained, Mr Gartman is probably accurate in his description if not his timing of expected market activity..

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