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
23,474 Blog Posts

In Order to Truly Bottom

We need to see mass hysteria. I am talking about men pulling out their hair, talking to themselves, wondering how it all went wrong. This mornings circle jerk is a good start. Everyone got all happy about the open, only to be slapped in the face with a skinny piece of bamboo. The way this sadistic market works, we will rally off the days lows, then throw it up again.

The point of this market, to sum it up and condense it for you, is this: it wants all of your money. The sole purpose of the stock market is to remove you from your money. You can ignore the daily price fluctuations and simply be a long term guy. You might sleep better at night that way. Or, if you’re a trader, you really need to stop playing high beta 100%.

During this malaise, aka market tumult, look at how well my utilities are fairing. In the past, stocks like ETR, EXC and DUK have given investors double digit returns during periods of risk off. By the looks of this market, if we are truly entering another 2000/2008 “X-mas is canceled” holiday trading season, you’re gonna wish to God, or whoever you pray to, that you listened to Le Fly and bought some power, instead of those bastard stocks you’re so keen on now.

To bottom we need capitulation.

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49 comments

  1. smartestone

    we could see an afternoon face-ripping rally (sometimes we get those) or a plunge..who knows

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    • Dr. Fly

      I’ve resigned myself to destiny, despite not believing in such foolish ways of the third estate.

      However, I’ve resigned myself to fate.

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  2. bart smith

    We are going much lower today “trust me.”
    Hey Fly. What about guys like Huggiebear? Guess we need a few roof top jumpers.

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    • Dr. Fly

      Huggie should take a month to only trade REITs and Utiltiies

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      • xxxhuggiebearxxx

        Huggie is sitting in cash, waiting to buy everyone’s margin calls.

        Once i take full advantage of the coming bounce, and get back whats properly mine, I may reposition, as you suggest, in some utes and reits. For Winter is coming, I am quite certain of it.

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  3. bart smith

    Did you see that GILD meltdown earlier. More in store this afternoon.

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    • Dr. Fly

      The meltdown might soon commence there again. It is a hedge fund hotel. That price action is a good sign for bottoming process.

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  4. tradercaddy

    Two things different this AM thus far.
    Russell 2000 out performing (did yesterday, also – down a mere .37%) and the chips went down and then rebounded intraday.

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  5. dewey dortmunder

    Succinct and powerful analysis, Dr. Fly. Wouldn’t the 2000/2008 scenario mean the end of the bull?

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    • Dr. Fly

      Hopefully history isn’t repeating itself and I certainly do not want to get caught up in the moment, only to completely reverse my opinion later when the market rebounds.

      For now, I am just referencing the past and what happened after a down sept and oct.

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      • dewey dortmunder

        I believe you have said winning the money is more important than being right. Thanks.

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      • billiejones

        Mr. Fly,

        Sorry to ask this question repeatedly, but if you were holding TLT calls (January 2016) from lower levels…..would you continue to hold here? Thanks for any input.

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  6. TJWP

    As I am now a power man, I can assure you our industry is booming. Shale gas has been a boom for us. The ung supply market is becoming more responsive to our transmission needs. We don’t care about oversupplied inventory, and it actually helps as we decommission coal units over the next three years. Profits will continue to be rock solid, major risk is legislative, as politicians love to throw expensive regulations our way then decry rates going up.

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  7. paramedic648

    Slapped in the face with skinny piece of bamboo. First time Ive laughed in a freakin week

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  8. pirate

    Only a FOOL or a traitor thinks the Islamist leader Erdogan of Turkey is our friend.

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  9. The Next New Cat Thing
    The Next New Cat Thing

    Capitulation will arrive with:
    DIA has a 15 handle
    S&P in the 1700’s
    then give it all about 2-3 more weeks

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  10. contrarian

    If this rally reverses today and we end up down, I predict some window jumpers on CNBC. On the other hand, this is the first rally in the last two weeks that feels “real”, as my entire portfolio is up today, not just utilities, dividend payers, and the volatile junk.

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  11. nynyny

    We’re up 20 on the S&P and it feels like another 20 would be easily possible.

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  12. bart smith

    Shorted SPY 189.63. Think we start tank #2 for the day soon.

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  13. bruce keller

    It’s still going up ’til Thursday or Friday because of OPEX and also because people just got done thinking this is a new intermediate downtrend, which is correct, but now they need to second guess themselves, and a one day rally won’t cut it, you need another full day and a half day to sucker them in.

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  14. bruce keller

    If this is an elliott wave, we might not start going back down ’til another week or so from now, maybe Oct 22ndish. The green one is just a guess, the red is the elliott guess

    http://imgur.com/CL98F4F

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  15. og

    As long as it doesn’t close like death I’ll be happy.

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  16. smartestone

    market looking sick again..bought some DIA puts awhile ago

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  17. Marc David

    Will the Turkey Gods be able to save us?

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  18. bruce keller

    IWM will finish 3%+ today. Normally this is a jinx, but not today.

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  19. tradercaddy

    Somebody just leaked INTC earnings, I think. Supposed to be AH.

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  20. chiefton15

    Totally agree with your post. I think we have to get a big gap down before things get interesting.

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  21. bart smith

    Afternoon dump on schedule

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  22. runawaytrain

    Oil and NatGas getting hammered…. oil sell off is freaking amazing to watch….

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  23. bart smith

    After oil bottoms what are favorite energy plays of the board??

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  24. newbalance

    ESV, SLB..

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  25. bart smith

    Wouldn’t oil need to be a lot higher for SLB business to expand?

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