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

Le Final Stand

I see my bad fortune has brought out the most fashionable folks to comment on my blogs. I am deeply humbled and grateful to see your commentary. One might say, I am undeserving of your grace.

I wasn’t being sarcastic when I said “I’m done.” I had a feeling these stocks that I happen to own would drop off the table again. It’s the exact opposite of a short squeeze. You know when a stock is running and it has a big short position? You know how that helps to fuel further upside? Well, when a stock is careening lower, it takes out all of the guys who bought it on margin first. After those guys are finished, it starts to take out the traders and then finally the believers. I went through this process in a number of stocks, most recently in WNR.

Any of you remember when I averaged down in WNR at $11 from $17? Eleven was the absolute bottom and after that last round of selling was done, the stock never looked back.

This is a little different, only because the underpinnings are a bit more liberal. Valuations are still high, even after a 30-40% drop. People are referring to these names, the very names I happen to own, as the centre of what they deem to be a bubble. Bubbles stocks aren’t treated with decorum on the way down.

All jokes aside, I have two choices in front of me.

1. Keep the faith and hope to baby jesus that these stocks find support.

2. Book the massive losses and hope to think of a way to make it back elsewhere.

The primary reason why we hold onto our losers is the fear that we will miss the upswing. We feel the stock has eyeballs and is waiting for us to sell in order to bottom out and scream higher. After we sell, all of the hopes and dreams we had for the stock will come true and we will never forgive ourselves for not seeing it through.

Naturally, this is fatalistic thinking and is never a reasonable approach to managing money. A line in the sand must be drawn because the future is always a mystery. We can make educated guesses about it; but it’s never assured.

So this is my final stand. I can afford to absorb a little more, with nothing more than idle hopes of seeing them bottom out soon. I know this is a futile endeavor because carnage begets more carnage and there isn’t any reason to hold onto broken stocks, unless of course there is a short term catalyst.

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57 comments

  1. mojo

    3. Sell half

    I have wondered if you ever set any kind of stops, and if not, why not?

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    • The Fly

      I always put stop. I never let stocks fall more than 10%. This is a rather unique experience for me.

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      • Honest ABE, nohomo
        Honest ABE, nohomo

        Comeon u lil pinnochio, dis shit happen frequenlty…..
        …….
        sale, splk, feye, wday, ego, ezpw, angi, yelp, gogo, afop, rtpt, arex, bmrn, atos, gnc,

        thas just ytd playa shall i go on?

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        • Spud

          You are a douche. I don’t see any of your graveyards. He didn’t lose much in many of those.and made money back on some. This is an exception on an otherwise good record.

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        • THEY WILL KNOW ME BY THE TRAIL OF BLOOD
          THEY WILL KNOW ME BY THE TRAIL OF BLOOD

          please list every stock he has ever mentioned, i need a buy list

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        • The Fly

          Honest Abe

          That list is incomplete. Plus, I made money on some of those trading out.

          Keep trolling. I might feed you.

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  2. VOS LOCOS

    Le Final Stand is prob the 200 day MA. All the growth names coming up on it. SPLK Prob first to test. Still Gaps to fill on all charts tho mang. Those SKF trades you made in 09 were sickest Ive ever seen. Could be a repeat. Good luck sir

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  3. oldmantrader

    Sell, sit back for a few days drink some black tea, no milk and contemplate as only a master of the universe can. Plot the comeback.

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  4. juice

    Le Fly-nal stand

    I think not

    never forget Le Fly is winning even & especially when he appears to be done

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  5. alf44

    .
    Once again, I’m reminded of a very wise saying I heard recently …

    “The other side of the mountain is always hard, especially when you are skidding down it without pants.”
    .

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  6. og

    Don’t give up Fly! Live and die by the momos!

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  7. The Pirate

    The ‘Fly’ is a Napoleon of sorts, so I immediately thought of this!

    https://www.youtube.com/watch?v=F23GG58eL2I

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  8. Tau

    Winners never quit. Quitters never win.
    -French Montana

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  9. jesus

    this is why english majors dont suceed in the market.

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  10. TheHarper

    How I stopped worrying and learned to love the market.

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  11. marketSNAFU

    While painful (and I personally sympathize on a number of the holdings), I appreciate the insights and I am learning much from your posts and thought processes. Looking forward to the recovery phase.

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  12. matt_bear

    regardless of personality i’m no fan of seeing someone take huge losses.

    i think it’s time to move on, take the lumps, and allocate the money to the best idea going forward. an feye gap fill at $45 is not something to stick around for.

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  13. Bozo on a bus

    Senor Fly, at least five years worth of hard-won education just in the last three paragraphs.

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  14. David Sypkens

    I read your comments daily and have learned much from you and ChessNwine. Thank you for your wisdom and honesty in both good and bad trends and I hope things turn in your favor soon.

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  15. jules

    What other opportunity is there right now other than these death stocks? They are 40% from the highs, any earnings blow out or positive guidance and they’re back up just as fast as they went down. I’m long 800 shares of FEYE at 72 (peanuts to you) but what the Fuck is the point of selling now? I bot puts and will hang on, Fuck it.

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    • Honest ABE, nohomo
      Honest ABE, nohomo

      HAHAHAHAHAHAHHAHAHAHAHAHAHAHAHHAHAAHAAHAHAHAA 800 @ 72

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  16. Hideous fibs

    Yellen is about to take us on a Demon Drop coaster the size we just are not prepared for, I’m positioned in Old Grand Daddies as these are the Masters at this game

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  17. wavanca

    re. “thinking of a way to make it back elsewhere”, just what are your thoughts? New longs? Shorts? If bio and beta are done, what’s the next trend? Could this be a rare opportunity to ride a downtrend?

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  18. cmonar

    SPLK coming into trend and volume support? bought a few May calls

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  19. ripper

    Hold on Fly. why sell stocks now that you bought much higher? FEYE, SPLK, YELP are dirt cheap. dont sell out.

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  20. JV

    getting long froth during a momo trend reversal was an odd an un fly like manuever. worry not, have a sandwich as they will bottom when you sell

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  21. Jules

    Fuck Jim Cramer.

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  22. illmighty

    The Fly always wins…even when it looks like he is losing! Energy names (sans coal) are looking mighty…SD on target.

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  23. William Wallace
    William Wallace

    I just bought 100 shares of FEYE at 55.34!
    That’s how it’s done!

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    • ripper

      YEAH THE LOW IS IN. GET LONG MOMO NAMES. (YES MOMENTUM MONDAY)

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    • The Fly

      Very soon you will be introduced to “the rack”

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      • ripper

        I am going to avoid the rack and buy EZPW around 11 instead.

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  24. Danny1980

    This selling is wayyyyyyy overdone. Seems like the whole damn market is moving out of FEYE. Gotta be a monster reversal coming

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  25. Discoordinated

    What about dumping feye stock in favor of some calls that go through earnings and allocating the rest to something in a stronger sector?

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  26. Boss Jim Gettys
    Boss Jim Gettys

    I am pretty sure Le Fly needs no advice on what to do next…

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  27. Danny1980

    Just bot calls in SPLK (Cheap) speculating on a 200sma bounce here

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  28. JPMorgains

    This always makes me feel better, I hope it has the same effect on Le Fly.

    http://youtu.be/StTqXEQ2l-Y

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  29. og

    Nothing like an end of day sell off!

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  30. The Zombie

    The Fly is still God, trolls. Ask anyone who was here during the 08-09 panics what He did for us.

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  31. Mr. President

    Steady, General Fly.
    Think of FTK.
    Meditate on it.

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  32. unclehar

    these stocks could be canary in the coal mine, hopefully the weekend is very quiet.

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  33. Mr.Partridge

    Dr,
    nice post, as always.

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  34. Herd Mentality

    ANGI and FEYE are acting like total dogshit.

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  35. Honest ABE, nohomo
    Honest ABE, nohomo

    listen heyuh muthafuckas, the fly is down 20+% ytd so yall doen even know

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    • The Fly

      Honest Abe

      Since I am finished, why don’t you take the reigns and tell us all what to buy or sell?

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  36. J Livermore

    I love big titted women in LULU. Not fat big titted women mind you.

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  37. Jason

    Just going long FEYE here with the capitulation trigger

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  38. JewishMantis

    I dont know 1/100 of what Senor Fly knows about investing and trading, but from someone that is mostly on the sidelines the perspective can be a little different so…

    Stocks that have charts like the momo names tend to slice through the 200 like butter. Maybe a day or two respite there to suck in another few people and then right back. FSLR and NFLX come to mind just as examples. Plus with the market near the highs, if we get even a small correction, which stocks will be sold ? Not the grandpa stocks which are weathering the storm. It will be the momo names. I think these are great companies and I have no advise on trading them, but as someone above said… watch out for the suicide trade. Stay sane out there guys.

    PS. Whatever happens Fly is the unquestioned man. For keeping us all entertained no matter what AND listening to the ass hats on the comment boards who are only out during tough times.

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  39. Geoff Garbacz

    I have the answers to your troubles. You discarded me after I smoked you and all the other minions on your website. I gave you huge winners like TASR and CMG. Your CFO has my contact info. Please get in touch and you will not have to dribble in public anymore.

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  40. snoozemr

    No need Sir. That information is still scribbled above the 3rd urinal in the bathroom at the west end of Grand Cental Station.

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