As the market winds down another day of crash sequence trading, I am enlivened and comforted by the fact that Fed Dudley insisted, just this very morning, that the Fed would raise rates in 2015.
Biotech stocks are off by 8% today…as an index.
Our oil and gas industry has been decimated, thanks to the absurdity of its business model, which calls for oil to price above $70 per barrel…forever. Otherwise it’s grossly unprofitable and therefore must cease to exist.
Our tech sector has been swallowed whole by Apple. Nothing else exists.
Our shopping malls are barren and the stores inside of them teetering on bankruptcy…mainly because job creation in this country has moved away from the higher paying varietal and more towards Shake Shack.
Plus anyway, the deflationary vortex known as AMZN is, slowly but surely, making sure that the retail landscape changes on a permanent basis.
All of these things, these great wonders, permits our new Fed chair to make speeches and to allow her underlings to make speeches about the virtues of higher rates. If the argument for higher rates revolves around the idea that we must do it now, so that we can cut rates later, why the fuck are we doing it in the first place? It seems like a giant circle jerk to me.
The sad part about this drop is that it’s not the worst I’ve ever seen. I am entreated to these drops once per year, each time in a difference sector. My only wish is for the whole thing to just fucking crash already, down 15% in a single session, so that I could get some closure in my life.
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Why aren’t you short like the rest of us?
It’s anyone’s guess.
Yeah… I wish you went full Horatio Clawhammer since August. I miss that guy.
I am initiating new longs here. Looking for ES 2040 by mid-Oct. Things may fall apart again from there.
I think today may be the long-rumored higher low since that mini-flash crash in August. If not, I think it occurs this week. See chart below.
http://tos.mx/hBc0Qb
BTW, if not initiating new longs, I sure as hell wouldn’t get short down here. I am, however, merely a pseudonymous member of the unwashed reader class, worthy of neither your time nor your trust.
Give yourself more credit. Do not apologize for believing in the future.
80%
of the market under 50dma
My oversold indicators usually line up pretty well with yours. That said, my indicators are there if we can get a bit of a bounce into the close. A day that sees a drop of > -2% often gets a bounce of more than >1% especially when my oversold drops under 30. You are a good man and have given lots of readers good advice. Just thought I would pass this along.
I remember Horatio trying to short
banks back in the day . I think
he got rich doing it.
IBB is -3% YTD and now only up 50% in the last 2 years. No biggy.
Investors should have listened to Janet Yellen on being too greedy on these. lol.
All true. I should’ve sold every share I had when she mouth vomited to end her speech last week.
Took off my shorts, feeling naked.
i enjoy zillow inboxed daily. you people have exceeded 2007 bubble prices. haha
This is a mere correction, children, what in the world
could everyone possibly be so worried about 11% down
EXTRA HALLOWEEN
1000 new lows/32 new highs
another 90% down day
I recall in 2011 when I followed a guy who used to speak about series of 90% down day “washouts” and freaked out when the indices touched 20% down, saying it was now a “bear market” meaning everyone should sell out and get full-on short that day. It marked the bottom.
I think the 6 year mark of a (“bull”) cycle is a little different than the 2yr mark
Fly sorry for your losses. Seems like some big players are selling. I’m negative for the year, even being 67% cash. Even hedged my oil stocks have ripped the keel from under my boat.