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

A Brief Overview of This Market

Bubble stocks are leading the way lower. This time the rest of the market, sans REITS, select mega cap staples, and utilities, are going down with them. Forget about the inflation story, as corn, oil and the rest of the commodity sector continue to swan dive lower. It seems the only place of respite is in fixed income/dividend plays. You find a stock that is yielding more than 3% with a solid credit rating and you will also find a stock in demand.

Do we ignore what is in front of our faces and simply buy the blood? Or, will this market rout grow legs and become the monster it was during April and May? You know I believe this sell off will be shallow, but I am open to suggestion. As of now, I am still sitting in a 30% cash position–stuck in positions plunging lower. I am tempted to average down in a few, but that’s what got me into trouble in April, so I am refraining.

But, I must admit to you, based upon the laws of science and mathematics, this market is going to bounce soon and hard. It might trade lower, materially, over the next month or so. But over the next 10 days or so, a bounce is what you should be looking for, not despair.

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22 comments

  1. bruce keller

    With ZIRP there is nothing else other than buy the dip. Although IF the buying program ends in Oct, maybe it will be rough, but probably not. The big bag top is in a few years when lending blows up after measures like the ECB essentially forcing banks to loan. That can’t end well.

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    • bruce keller

      Side note. When the Fed ends buying in Oct, I bet in Dec we see the ECB to start buying. 😉

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  2. chief keef

    tna then guvna

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  3. tsmalley14

    Sir Fly, Just throwing myself.. I mean my ideas around and am entertaining the idea of going long shares of this degenerate – $MSTX.. Oversold on PPT and sure to bounce back if historical accuracy serves me correctly.

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  4. jules

    Solar stocks are getting bought off the lows every single day, this price action can not be ignored.

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  5. Bullish

    But what about Lebron?

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  6. duckkell

    IMMR – something is shakin

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  7. clarkevii

    Lots of strength in gaming: $EA $ATVI $GME

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  8. bruce keller

    Why aren’t more posting? This is a super bounce I think. 80% chance. Made that stat up.

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  9. helicopter ben

    We all know the time machine is up and running again. Don’t patronize us with speculation. I am looking forward to a cold winter, because I won’t be able to pay heating bill due to all the capital losses you’ve seen already in the future.

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  10. blackalgo

    ANGI looks like it has put in a bottom. I’m long here.

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  11. j livermore

    Based on what has occurred 2 hours into today’s session, bears about to get routed by the end of trading tomorrow IMHO.

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  12. j livermore

    $SINA

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  13. NON Solo

    Bruce, what broker do you use? I’m currently with Options House. how can interactive brokers charge only $1 for stock/etf trades? they have slow execution?

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