If it all comes crashing down, so be it. I can’t just sit here, watching these letters with numbers decrease in value without doing anything.
I told you 2016 would be a transitional year for “The Fly”, a year in which I eschewed the risk of individual non-systematic stocks, in exchange for broader tactical allocations using the power of Exodus.
To that end, I added to my SPY position at $195.12, reducing my basis to $198ish. Details are inside of the hallowed halls. My risk is mitigated by holding period, which is inflexible, the diversified nature of SPY, my TLT position and my calculator brain.
It’s not how the market opens, but how it closes.
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I’ll help out with the market close as I’ve done the past 3 days.
Any idea about FRO? Getting demolished on no news. NAT barely down.
Check overseas parent.
BOT $TNK. Small position, will add if it goes lower.
Who needs Exodus, you give all the calls here ;-))
Not in real time. And it’s a lot more than my buys/sells.
Hopefully you bought $BAH
buying for months
STFU
We NOW go POSITIVE for Q1…..investors handled this week’s downdraft with style!
Lots of rift raft cleared out…… now we have more room for the rift raft to re-up and take us higher. Q1 2016 closes positive …… as Mike McCarthy (GB head coach) said you can book it!
Is it time for a ride in the FAZmobile?
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Could someone explain why China devaluing their currency has caused such market headwinds and fears?
They’ve been pegging Yuan to King Dollar for so long, and with the Dollar showing it’s might and strength, it would seem appropriate for them to devalue. Appreciate the response ahead of time.
Since the SPX was around 1755 the price of commodities started to slide down due to QE ending and a huge global glut. Many Chinese borrowed a lot of money to buy commodities for speculation. They bought the commodities on those loans and went out to buy Property, Global Equities, more commodities with it. Foreign Money loved China and took all the Central Banker QE money there. The Super Rich in China said OMG we have to get our money (Yuan) and US out of China before we are arrested or killed for bad loans there. China only allows a small amount to be taken out by a person. They bought Art to smuggle out, they funneled Money thru off shore casinos, they had people smuggle it, etc….once off shore they had to sell Yuan cheap. China pegs the Yuan to the dollar and only allows a 2% move each day. Last Year China threw about 500 billion (I think) to try and support the Yuan cuz nobody wants it, and they were trying to get currency status. They got it, they tried to support the Yuan a couple of nights ago with a very wasted 20 billion,which gave them no support. China Money is fleeing China and they can’t stop it. They gave up and is letting it Devalue…that is it Charlie Brown.
It’s simple as movement of money.
Chinese have moved billions of yuan to international markets. Look at LA, NYC, Sydney, Vancouver, etc. and see how much real estate prices have gone up. The Chinese were big factors in driving prices in these markets.
Then you have outsiders moving their currency into yuan to invest in the country.
This currency cross-flow wasn’t a problem with a stable dollar-yuan because you knew your payments going forward. But a yuan devaluation means you’re fucked. Chinese international investments get more costly to maintain. Your investments in China are now losing value. The only solution is capitulation by both parties.
Thanks for all of your responses, and very helpful. I guess the only follow up I have @hftongue is why the Chinese international investments get more costly to maintain? I mean, they probably purchased that real estate in the currency of those locations (U.S., Australian, and Canadian Dollars) so that already had their Yuan converted. Am I off on that? Thanks again.
Suggests their economy is weaker than expected and attempt to move from export economy to consumer one is not on track, which has implications for ww growth, demand for commodities, an Asian currency war, the intelligence of US rate hikes against that backdrop, etc.
ROFL Margin Call…their economy is SO WEAK, no suggestions there. The consumer class is made up of people taking their life savings and buying property bonds so they can get a higher rate of interest, and now the companies that sold those bonds are gone..ah sort of sounds like us at 2008,ouch. It is SO UGLY in China…and it is not just their pollution. Oh, Oh last night, the govt using hired help demolished a hospital with doctors and patients in it, cuz they wanted to build a road. Now that is ugly.
@Nymph I said “weaker than expected”. I didn’t say expectations were strong to begin with. They weren’t.
I seem so remember a Tom Petty song about markets like this.
Calling it now. We bleed into the close. Dow down 600 when bell rings. Going to close my short positions and go long by EOD.
I shoot the next person who says they know what stock to buy or what the market is going to do.
Shoot me.
Mercy Killing?
I would be happy if the DOW came within 100 of my call.
I’m buying the close. Except for that POS APPL.
Have a super fun time.
Just bought the LABU……lets see the last 90 min believe we close green
China man have fucked round eye.
Ho
Ho
Hho
Monday – Market introduces unsuspecting traders to new reality
Tuesday – Obama cries, North Korea tests hydrogen bomb
Wednesday – Chinese circuit breaker lockout
Thursday – ????
Thursday- bleeding a$$e$ everywhere
Check