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
23,441 Blog Posts

Tsunami of Liquidity

The Bank of Japan is the most prolific manipulators of asset prices in the world, which was forecasted here long ago and the reason why the NIKKEI was my top pick for 2013.

HIG just guided up, partly tanks to its Japanese exposure.

Taking a quick glance at Japanese stocks traded here, most are in the green and making new highs. The NIKKEI is +55% since November.

Outperformers include TM, KUB, NMR, IX and MTU. Two stocks that haven’t moved yet that should benefit from the sinking yen are HMC and CAJ. After a market decline, it’s worth a shot.

The big story of 2013 is the move up in mega cap dividend payers. Long term investors need yield. There is a select group of stocks, with caps over $10 billion, that are quietly minting coin for their investors.

Here are some notable outperformers.

BX, XRX, WAG, KMB, CPB, BMY, BLK, CNP, PAA, BDX, CSX and EXC.

Truth is, I have more than 200 names with market caps over 10 billion, yielding more than 2%, that are +10% year to date. It’s incredible and of course absurd.

This market is begging for a beat down. It’s real hard to bet against liquidity because “they” have an infinite amount of money. Nevertheless, even they know markets need the illusion of normalcy. Periods of distress can only embolden public opinion in their favour.

Therefore, you should expect markets to behave as they have in the past, because they’re too lazy to deviate from the blueprint.

May will be down and those losses will redouble in June. By July, the media will be clamoring for more QE. Hence, Bernanke’s job will be supported by a vocal Wall Street, helping him manage the US economy with impunity.

If this plays out the way I just explained it, volatility will be a supreme buy towards the end of April and taking a net short position will be extremely profitable by June. However, be mindful that it’s an extremely difficult task, this business of timing tops. You might be better served taking my approach via a very large cash position and the patience of an elephant.

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19 comments

  1. Granpa

    Fly, thanks for all you do for old men looking over their shoulders when near an open elevator shaft or sewer man hole cover. You have been prolific and profitable since before IBC. I can’t imagine a Market Day without YOU and your cast of thousands. God Bless Broker A.
    Indued, the best writings on these here interwebs. Always a laugh too.

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  2. Julie Turner

    any further comment on EXC? Really like your site, wit, wisdom and am learning alot here

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    • The Fly

      Big yield that is attracting lots of old men.

      It probably goes higher too.

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      • Julie Turner

        they cut their divvy, didn’t they?? I went dumpster diving and bought some after it settled down around $29. It’s been ripping so much I just wondered when I should let it go…it is approaching overbought on a weekly basis. thanks for your reply!

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        • Vertigo

          How do you measure “overbought”?

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          • Julie Turner

            the weekly RSI is just over 70. Not a sell signal, just an observance. But it was good entry point for me when the weekly RSI was at 20.

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  3. Vertigo

    52 week high for mega-cap $LMT

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  4. lol

    If they’re making highs vs dollars, just imagine what it’s doing if you owned it against the yen which is making lows?

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  5. lol

    I wonder where the retard speculators who dumped all their cash into bitcoins (the archetype “Mr. Market” more so than the actual individuals) after determining gold was not the “super mega asset” will put their money next?

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  6. The Eye-Talian Stallion
    The Eye-Talian Stallion

    Or, the market will ignore the “go away in May, I’m going 100% cash” crowd and continue it’s march ever higher. There will be the occasional “I told you so” dips but these will be small and will bring out more buyers.

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    • Mister Jinx

      This is what I’m thinking may happen this year. I’ve seen way too many articles about how well “Sell in May” has worked (from Hulbert and many others). Seems like if there ever was a year to fade it, this is it. Of course, I doubt they can just push the market incessantly higher, either. Seems like, as we’ve seen for several years, it could go either way. If it marches higher, it won’t have paid to try to out-think oneself. If the market tanks from here, it will be “obvious” that it was going to have a correction at some point.

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  7. JTU

    RAS making new 52 week highs.
    Locked in a 10% gain!
    Something’s working!

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  8. Vertigo

    52 week high & breakout as $WWE body slams the bears

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  9. King of all Muff
    King of all Muff

    the demon VXX, oh no!

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  10. Mike

    buying more GTAT here??

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  11. Danmarks beste trylle shop

    Heya i’m for the primary time here. I came across this board and I find It really helpful & it helped me out a lot. I’m hoping to present something again and aid others like you helped me.

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