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

TAXES ARE DONE: THE COLLAPSE IS HERE

Stock market bulls, “champions on the internets”: prepare for a hideous pullback in all indices. Let the slide in precious metals be your crystal ball. This is not an isolated event. We are about to undergo a liquidation in the commodity sector, both gold and silver will liquidate a little more than others.

Yes, it’s true, I am long a lot of AG going into a god damned meatgrinder tomorrow. Am I happy about that?

Yes, I am absolutely riveted by the trading in silver this evening, watching it get its nuts beaten out of it. I’ve also been in New York these last few days, attending to parties and family events–chauffeuring the family back and forth–attending to their whims.

As soon as the market opens tomorrow I will be greeted with “TOTAL MASSACRE” in my silver position, as well as my other small crappers, hedged by cash (which is only 25%) and my HDGE position, which is almost 20% of my book.

I expect to undergo losses and will figure out how to proceed as the day progresses. The knee-jerk thing to do will be to sell AG and chalk it up as a “stupid idea.” But I’m not so sure the miners will drop as much as silver is this evening. You might just get a mean reversion trade, with investors betting on a capitulatory bottom.

We all know this is wishful thinking. The God damned bottom is gonna drop out of the miners tomorrow and I will get to enjoy its splendour in full bloom.

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13 comments

  1. Sir Robert Hoek

    I got long some spot silver about an hour ago. Still if the big boys want it to go down. Down it will go.

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  2. Hawaiifive0

    This is an orchestrated stop run and margin liquidation, so the big boys can buy cheap. A week or two max and we’re heading back up to surpass all time highs.

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    • Art

      Scariest thing, I think, is the volume of guys saying this. Not precisely the same scenario, obviously, but seems like people were saying the same thing about AAPL when it was down by $150.

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  3. kelkun

    You’re WAY better off long the miners than the metals that’s for sure at this point. Some of the names are almost at the “eh, whatever” point as they watch the metals implode. Namely $ABX. Looking to get long that name.

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  4. Hawaiifive0

    I’ll be adding to my 2015 SLV LEAPS and 2015 GDX LEAPS tomorrow or sometime next week. If I don’t make money on those by 2015, I’ll eat my hat. Of course that’s probably all I’ll have to eat.

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    • Obummer gonna win
      Obummer gonna win

      I have the same idea, but tomorrow is too early. It will continue to drop.

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  5. Munchikins

    HOPE is not a strategy!

    LIQUIDATION is!

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  6. The Fly

    I stand by my AG purchase. Ill be licking my wounds, but I’m fresh in this name and can hold my breath a long long time.

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  7. fake amish

    No one worry. Tax hikes class warfare and foodstamp parachutes are the future. Nothing will ever go wrong again.

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  8. Testicules

    and I was just looking at a silver mine yesterday

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  9. slim

    It’s 6 am ET and EXK is down to $5. Wow, just wow. I was looking at it Friday afternoon, glad I held back.

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  10. jbran

    Buy the miners at book value.

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