Just when I thought the cocaine addicts from CNBC could not hit a new low, they did it again. At the end of the trading day Maria Bartiroma and some other talking stick said “this sell off is the result of rebalancing.”
Really, stupid?
This sell off has NOTHING to do with end of month rebalancing. I cannot believe they are spewing this crap. Get to cash and get your defenses up, for the rollover happened when bonds rolled over.
This sell off is a result of a risk off environment in Japan, which threatens the yen-carry trade perversion. On top of that, interest rates have been spiking. See TLT. With that, REITs and mortgage related names are under pressure. These are the market leaders. The big cap dividend leaders are getting smashed too. You have to recognize when the tape becomes difficult and respect it. Don’t make asinine excuses for the sell off. There are many people on margin who need to be blown out.
Basically, the dumb money is being clawed back, as it always does through time. It’s been too easy for too long.
Watch Japan. Watch IYR. Watch TLT. Watch XHB. And don’t watch CNBC.
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it’s all rebalancing .. nothing to worry about!
carry on buying everybody!
don’t worry, be happy 😛 😀 🙂
watch fro
FRO is now gherri curls: CURL
FRO now wears a Hat.
Long @1.86
On another note……watch POLR. Could be, could be not but I’m betting it gets interesting. Their holdings are surrounded by the big guns.
Lol I almost bought that thing… But then I was worried if the market turned down dash for trash would end in the worst way so I passed.
agree
I swear to god, no one looks any other charts than usa’s.
Australia, in free fall along with Brazil. Asia, sans japan, in the last six weeks they all broke out and broke down bad. Japan can give back another 10-15% and still be in an uptrend……………..
And yes, reits went from up 25% on average to up 13% in one week……………..
Tread lightly and good luck
well said
Rebalancing? Volatility doesnt spike on rebalancing!
I heard some of that couldnt believe it. What percentage of end of month (literally) is not “bullish”, flat, or at least not plunging. You got to be kidding.
Finally, we have some fox for this hunt. I’ll go fetch the hounds…
GET A LIFE
That sell off certainly looked like the real deal. I look for Japan to be down BIG Sunday night along with ES. Still lots of extended stocks that need to be punished and remind the buy and hold crowd that it’s not a one way street.
CNBC commentator job description:
#1 Find reasons why the market is bullish
#2 Find reasons why the market is not bearish, even when it may look that way.
#3 Find reasons for people to buy various stocks.
They wouldn’t have gotten hired if they didn’t do this.
Right, and don’t forget the other side — when the market suffers a 6% correction, run the “MARKETS IN TURMOIL” stuff too.
Yes, but only at the very end of the correction, in order to discourage people from ever buying low.
You’re right …
Excellent analysis and advice Fly.
Have a great weekend.
But will Fannie Mae trade $5 again next week? That’s the answer I’m looking for.
Step right up folks, red or black. Double your money or lose half of it every 15 minutes.
Bullish, LOL. That’s true. That’s exactly how FNMA stock trades. It would make a good candidate for Fly’s chart art masterpieces.
Made 26% in 13 minutes on FNMA today. Enticed by the 100K bids on L2.
flicker,
I also think japan will be down big again. I thus went flat………..
Happy Hurricane Season starting today and whatever to Orlando Gay Days bash starting today. Both of those venues should welcome ZIOP and FRO, curs of the year.
This is, of course, only your opinion …
True, but, a considered one.
Disagree, Not a Risk Off Yen, Carry Trade. Yen had strength along with euro because many were long EM short Yen and Euro and had to cover. This is IMHO more to do with the Italian/Spain/Greece Bond Yields. I have been asking around and nobody knows why it didn’t sell off on Thursday which it should have, I think someone was trying to prop it up (even though it did go out a bit weak). We have the German Con Law Court meeting in the second week of June to decide whether Draghi/EU can buy up bonds of bad Countries..this is off everyone’s radar and not priced in at all. Plus, China PMI number this weekend can really hurt Japan, etc. IMHO, Commodity Bubble I have been watching has popped already and risk on/risk off is gone. Yen is no longer a risk off vehicle. Plus, this market was SO OVERPRICED…had to blow.
Either Way, as we talked about earlier in the week when that stupid rally was happening, US Bonds were moving up…and as that happens, this Nymph is a happy camper cuz the Clams are losing their Power to control this market….BTW, the CHina PMI (govt version) actually beat estimates, overall it’s in a small range of movement but still holding above 50 (the HSBC FLASH number didn’t have as much love a week ago though, here is the link to official PMI http://www.funggroup.com/eng/knowledge/research/PMI_june13.pdf
Nymph. I think the Clams next move is to step up the purchase of ES. Yes, I believe the Fed has a very large ES position and props the market up when times look shaky. This will never be admitted however.
Flicker, The “Other PPT”, the dark helicopters of the Plunge Protection Team…the stuff that Bear Nightmares are made of?Just like a black helicopter, I haven’t seen it yet. But it could be ther? Don’t Know..
But, What the EU Clam (not ours as much) really needs to worry about is that money is fleeing out of EM (emerging markets) and EU Banks are the BIGGEST lenders to them, There are a lot of Loans that can get ugly real fast. The Super Big Money has been selling the Aussie for about a month now…the global growth/commodity story is over IMHO. That Bubble that I have been watching and learning about since 2009 is coming to an end as our dollar/yield gets stronger…not sure even the Magical PPT can save the day?