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
23,431 Blog Posts

Am I Supposed to Buy The Dip? Where Does it Say That?

My situation might be different from yours. I am not being dismantled by this drop, off by just 1% for the day. I imagine many of you are down between 2-5%, for this session alone. My trading accounts are down much less. It’s my longer term holdings, the 35 names I’ve alluded to, that are doing damage to me.

I’ve had an amazing run from my May lows and was bestowed a gift from the stock gods in the form of a surging IFON share price, which subsequently allowed me to exit with honor. I accepted the gift and promised to never sin again.

I am balls deep in TLT, ETR and EXC, all conservative positions that serve me in two ways.

1. They don’t tank on days like this.

2. They can be liquidated immediately and the funds can be redeployed into riskier avenues of fun.

But, looking at this market, the question lingers in my head: “why should I buy now?”

We might very well get a bounce tomorrow and everything will surge. But I will make plenty of money in my 35 stocks and my defensive ones will not tank; they’re moribund statues of austerity.

The way I see it, the only way I am to reverse my deficit and post gains for 2014 is by nailing a Hail Mary trade, an outlier event that is missed by most, captured by the best.

With that in mind, I will tell you my honest opinion, without dramatic flair.

We will get a bounce tomorrow, perhaps not at the open, but by the close. If we do not, rest assured, based upon the non-negotiable laws of mathematics, we will get one on Monday. After 5 days time, the rally might fail and we may resume lower again, causing great pain and sorrow for the masses who bedevil me with inane questions.

In summary, there is an easy trade to be made; but I am hoping for something bigger.

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47 comments

  1. dazedflip

    Down .8% today. Tons of cash and waiting patiently.

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  2. dazedflip

    Nice bear logo on ibankcoin, love it

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  3. Friday

    “We will get a bounce tomorrow, perhaps not at the open, but by the close. If we do not, rest assured, based upon the non-negotiable laws of mathematics, we will get one on Friday.”

    Tomorrow is Friday.

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  4. Thomas Jefferson

    Just curious. If the PPT flags oversold would you buy for a quick snipe in spite of your belief that we are “Downward Ho!”?

    PS. I think you have played this recent downward drift wonderfully. I didn’t realize it until I was mired in a short-long combo platter that is holding up pretty well but not destined for greatness. I thought to myself, upon that realization, “Fly is God!”

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  5. clegger_2000

    SHOMP?

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  6. it is showtime

    Top is in (Had to)

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    • Jules

      Maybe for September.

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      • it is showtime

        Chart of the day Bucko

        If “its different this time” heres a good reason
        http://finviz.com/quote.ashx?t=jnk
        Yes they did manipulate back after last one

        Don’t give them as high odds for a repeat

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        • Jules

          Looks like a buyable dip. If rates rise with an improving economy what will happen to junk bonds? Look at the monthly chart, old chap.

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          • it is showtime

            We see very different “chess boards” in front of us
            Thats fine. And rising rates make debt-interest unpayable somewhat quickly. Best of luck

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          • Jules

            Good luck to you too. But rates rising 1/2 a percentile hardly makes debt “unpayable” especially when corporations are making more money. PS. Did you see those Nike earnings!!!!!!!!!

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  7. fishersunny

    Wishing you the best of luck on the Hail Mary, Fly. Odds are extremely low those are successful in football with 0:03 left in regulation, but boy are they fun when you see one pulled off.

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  8. john

    Fly, thank God you didn’t succumb to your weaknesses and go 130% long today! You are listening to God, NOT THE DAMN STOCK GODS! “DON’T BUY ANY MOAR STAWKS”.

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  9. TraderCaddy

    The bears that live on my property look like the one in your logo (except for the cubs).

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  10. fryguy

    -0.6% aka whatever

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  11. The Wasp

    I am bothered that the Fly isn’t being more abusive generally. I haven’t heard him call anyone a catamite or fckwit in 2+ days. Please help!

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  12. ironbird

    Hilarious dump in AAPL. The aaple nerds will not abide with a bent in their mouth. Those peeps floss the teeth five times a day while frantically checking the skinny jeans for any stain.

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  13. jkeller

    Wait for the BS bounce, load up on UVXY then sell when they yank back the rug, as surely they will again. Been working like a charm.

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  14. Henry's Ace

    If you have no cash, then how do you presume to buy large for the “big trade”?

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  15. Henry's Ace

    (That was for Fly who told Thomas Jefferson above he would be buying this dip if he had cash)

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  16. BlueStar

    +4% today. 90% cash.

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  17. Dr Fly

    Ace

    I consider my treasuries and utilities cash equivalents and will sell them to fund purchases

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  18. ironbird

    “Do you know how many semiconductors are in cars?” Epic deja vu. That almost exact phrase got a young kid into his first stock back around 2000. Only that was said tonight, on the teevee. Senor Fly your market call is looking better and better.

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  19. Daniel

    Sir Fly:

    Thank you for your experienced and excellent guidance. It has become a staple of my market thought, along with that of your colleague ChessN.

    If you are into oriental babes playing Sarasate’s exquisite Zigeunerweisen, you might try this one (Kyung Wha Chung). You might find it a bit more nuanced.

    https://www.youtube.com/watch?v=VXCJA-RFIYk

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  20. Mateo Raf

    Allow me to digress, Le Fly.

    I found a vintage jersey on Alibaba’s U.S. site for 75% off than anywhere here in the U.S., even at a single item. Usually, you have to order at least 5 items, but many sellers will sell you one.
    The deals are incredible–you can buy shirts for 2 bucks each, and custom-make every single one. Shipping is free if you wait 25 days; otherwise, you have to pay $30 for speedy delivery. Amazon’s race to deliver faster and immediately makes more sense now, b/c they won’t be able to compete on price any more. In fact, the brick and mortar world, already hit hard by the internet, is about to have its foundation cracked. Why buy anything retail when you can get it direct from China for 75 to 90% cheaper, as long as you can wait 25 days?

    P.S. You can’t use PayPal to buy anything from AliBaba yet. They must be developing their own version of PayPal. You can use Western Union, though! No American Express or Discover–only Visa/Mastercard.

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  21. Zheeeem

    Sorry Dr. Fly. You must buy the dip. It’s the rules.

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  22. Dr Fly

    Alibaba is fucking retarded.

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  23. free how to build a website

    Great site the following! Likewise your internet site tons up fast! Exactly what hosting company think you’re the usage of? May i are getting your affiliate website link for the web host? I wish my site jam-packed as swiftly because you hehe

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  24. Dr Fly

    Asshole

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  25. alf44

    .

    Sir Fly,

    Will you be revealing yourself at the Vegas iBankCoin Conference?

    You seem to have taken great measures to remain anonymous !

    It would sorta be a let down to now suddenly discover that you’ve actually been “Bob Pisani” …

    … ALL THESE YEARS !!!

    .

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    • alf44

      .
      … pack your Elvis wardrobe !

      You’ll fit right in and NOBODY will suspect it’s “The Fly” !!!

      .

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      • Dr. Fly

        I will be at the conference, but wearing a disguise so that no one will know who I am.

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        • alf44

          .

          LOL

          Elvis ???

          Siegfried ???

          Roy ???

          —–

          Please … NOT … Wayne Newton !!!

          .

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          • alf44

            .

            “I will be at the conference, but wearing a disguise so that no one will know who I am.

            —–

            After the conference, you HAFTA post a pic of you “in disguise” !!!

            YOU HAFTA !!!

            .

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  26. sethster99

    Market collapses Monday the 6th. Guaranteed

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  27. Clyde

    Can’t even be bothered to prominently host your own conference. Sheesh. What’s the point?

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    • alf44

      .

      … think Peter Sellers as “Inspector Clouseau” !

      .

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    • ?p?l?

      But on the other hand, if you run a stock picking blog open to the zecco class, there are bound to be a few crazies who might’ve lost a little bit of money who might confront him paparazzi style. Not cool. Best to go incognito and observe.

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    • Dr. Fly

      I am not the host, The Option Addict is. I am merely a face in the crowd, enjoying the show.

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  28. Tex

    End of day bulk acquisitions were tempting, however, I agree that better sales may be had.

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