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
23,452 Blog Posts

Carnage on Open

I expect the liquidation in the commodity space to spill into the general market soon. We are doomed for a 10% move lower, now that taxes are done.

The sector has been screaming bloody murder for the better half of 1 year, constantly underperforming the general indices. Whoever is focused on metals/mining should be getting margin call’d out today, if not tomorrow. I didn’t think there would be another rout in gold today, but it happened.

As a result, I expect this move will exaggerate to the downside, picking up steam towards the end of the day. If you bought on Friday, refrain from averaging down here. I will wait to buy once more, then sell on a lucky bounce.

The downside to the metals is significant, considering where they’ve come from. It appears the core holders have lost faith, which has resulted in this damage.

Bottom line: Raise cash and hedge. We’re going lower.
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22 comments

  1. Sir Robert Hook

    Hoping my VIX 15 Calls will make me some money from this cluster f*ck.

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  2. Julz

    I was think the same about the VIX, although it probably won’t happen.

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  3. Regsho

    Gold is going to bounce here.

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  4. Julz

    Mr. Fly would a selloff in Gold and Silver not be bullish? 10% correction.

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  5. Rollo Tomasi

    Buy the blood, embrace the horror

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  6. Trading_Nymph

    We have such a huge ugly commodity bubble. I have been waiting forever for it to fnally pop..way too much of it at historical levels in storage…but that is what bubbles are made of.

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  7. The Pirate

    The ‘Fly’ said on Twitter:
    “Long time gold/silver bulls are the gimp from Pulp Fiction being put back into the box.”
    Funniest sh_t I have EVER read…

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  8. surplusdroids

    And the door to justify future easing just opened a tad more.

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  9. Jesse

    VXX not reacting very positively to all this….

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  10. Grinder

    I always thought that Fly’s old jibe at Jake ‘EXK to 0.00’ was good-natured banter.

    If these Feb lows get taken out, I’ll be damn – this is starting to look clairvoyant…

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  11. silentmax

    the gold bugs and the knife catchers are gonna get taken to the woodshed, lets hope that the margin calls aren’t so bad as to take everything else into a tailspin…

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  12. noodleboy

    Death to the useless yellow metal!

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  13. Tim

    Is there appropriate small cap short ETF one should consider?

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  14. Vertigo

    Bot $GDXJ 12.28

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  15. The Devil

    In defence of gold, I think that it is a store of value for the loooooong term. Butt, in the short term, it is very perplexing – Japan’s move on the yen should have been good news for gold but WTF?

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