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
23,428 Blog Posts

Stocks Rally, Stocks Rally, Stocks Fucking Rally

I didn’t want to go there, inside of the bowels of the recent rally, a disgusting place filled with excessive greed and distortions, but someone had to do it. It has been a marvelous time in the markets. I hope 99% of you made some money into the teeth of a worldwide BREXIT induced panic. The other 1% of you can go fuck yourselves.

I’ve all but protested the market for the better part of 2016, and have been idled in mostly cash, TLT, and some trades here and there. At the moment, I am long EDZ, a trade that will expire by the end of this week.

The air has been flushed out of the utility sector in recent weeks. Investors are entirely justified for selling the utes, something I’ve pointed to on more than one occasion.

Over the past two weeks, the best gains have been found in tech, banks and services, mostly semis, auto dealerships, textiles, and foreign banks who were being priced for zero during the BREXIT panic.

The median return for all stocks has been +4.8% over the past two weeks.

Hitherto, energy and gold stocks fared well, but not anymore. Those fucking bastards have DIVERGED from the overall exclamatory statements of grandeur, readily found in all of the major indices. Nevertheless, no one cares about oil anymore, unless, of course, it rallies.

Biotech shares are leading today’s rally, higher by 2%. There are, however, a few dozen up greater than 5% for the session.

All in all, we’ve come to a place where news flow doesn’t directly affect the moods of robotic buyers of stocks. This is a common complaint, expressed by bears over the past two hundred years. One would be wise to ignore anyone who says “one day the fucking news will matter.” We’re all positioned for what we believe to be a future reality. What is the catalyst for higher or lower prices? One of the arch catalysts for lower prices was the BREXIT vote. How did that work out?

Stocks are at record highs.

Another catalyst was lower crude will lead to a panic on Wall Street. Well, thus far,  lower crude has only been ignored by traders. Stocks continue to climb the wall of worry.

From my vantage point, the very next catalyst to be tested will be the dollar rally and how it might deleteriously affect FOREX markets. No one is paying mind to it now. But if China devalues their yuan again and U.S. corporations start to bitch about their plight to export their fucking broken dishwashers overseas because the dollar is so awesome, we might run into some resistance soon.

Until the world ends, I remain, inexorably, aboard the S.S. ARK, eagerly in search for storms that might pose an ‘extinction level crisis’ for mankind.

 

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23 comments

  1. peso trader

    It’s amazing the real estate etf IYR is about 6% from it all time high in 2007.

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  2. ironbird

    Did anyone die a horrible death today somewhere in the world? That is all that matters. It is the death tape.

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  3. btn

    CB are buying corporate bonds nad corporate stocks, and lending money cheapyl so others can buy corporate bonds and coprorate stokcs. Hard to fight that.

    And as the VIX shows, the market has no fear – yet their is still an awful lot of cash in bonds and other non-equity assets. So if Brexit didn’t have an effect, waht could stir the market?

    Then you can look at Poltitics and on one side we have an ex-NY Senator, one of the most Wall Street freindly politicians in recent momory – and that is the *Democrat’s* nominee. Not to be outdone as the party of the 1%, the Republican nominate a Billionaire for the second election in a row. I can’t see how a victory by either would make the markets run scared.

    Maybe corporate earnings will actually matter. Even when you factor in share buybacks, EPS has been falling for 2 years (http://www.yardeni.com/pub/PEACOCKFEVAL.pdf). If you factor out energy, then you still have a flatline, which explains 2015 stock market performance, but not 2014 and 2016’s new all-time highs.

    (ironbird, feel free to respond by calling me a kid that doesn’t know any better.)

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  4. it is showtime

    These guys are -clearly- setting up for 2016 election result alteration
    can drop it/crash it with trump surge, post trump, or post other
    They are getting their way with the election via your tacit willing cooperation

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  5. peso trader

    I’ll just say if you want to make a market digest a rate hike then to me the most advantageous time in a long time will be next week. If it can’t handle one now it never will.

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  6. ironbird

    btn Stick around. Senor Fly is one the smartest people on the planet. And. There is nothing wrong with being a kid. We all were once. Go fuck life to death now. Trust me.

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  7. t.c.

    Fly, a Brooklyn cop’s Facebook post is a good read concerning BLM.

    http://www.zerohedge.com/news/2016-07-20/my-own-people-hate-me-black-brooklyn-cop-slams-false-narrative-black-lives-matter

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    • btn

      There is a lot of truth there, but here is something I have a problem with:
      “most cops acknowledge that there are Bad cops who should have never been given a badge & gun, who are chicken shit and will shoot a cockroach if it crawls at them too fast”

      For example, the cop in Milwaukee was TOLD that there was a weapon in the vehicle. Why would someone tell a cop that if they were going to shoot the him? At most this cop will probably get a slap on the wrist for over-reacting and ***killing someone*** in the process. Should be manslaughter, just like if you accidentally hit and kill a pedestrian becuase you weren’t paying attention or driving too fast.

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      • t.c.

        The shooting you are talking about was in St. Paul, Minnesota and not in Milwaukee. I agree, that it looks questionable. However to me it looks like both the cop made a mistake and the young man made a mistake. The victim told the cop he was armed and then reached for his wallet to produce his ID, the cop was claiming he ordered the man to stop reaching and he kept reaching. So, it sounds like mutual mistake, but hard to tell without video of that moment. Very sad, especially for that little girl.

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        • og

          Yeah, I have a hard time believing her. Wonder if it’s like the Hands up! Don’t shoot! lie.

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        • t.c.

          Honestly, believe it’s a good thing that violence in the black community is being talked about openly. The solution, in my opinion, is less Rick Ross and more church on Sunday. If people take that seriously we will build families and communities instead of destroying them and that goes for all Americans.

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        • t.c.

          OG, the girlfriend in the video said the victim was reaching and the cop said he was reaching too, so I don’t think this is an instance of false testimony. The question, I think was whether the cop told him not to reach and I didn’t see the girlfriend deny that when the cop said it.

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      • ironbird

        Look. Bad shit happens. Some of us have been profiled in the past. Even mistreated. But time and possibly ignorance wants to believe it is better now. The ‘War on Drugs’ was a son of a bitch to be raised in. Fucking war on us. That has changed. We kill others now. Have been for awhile.

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        • t.c.

          For sure, even if the shooting was legal, no way it was good. That poor family.

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        • ironbird

          t.c. That comment was for the kid. Absolutely assured you are one of the good guys. Would never throw that nonsense your way. True or not.

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  8. fryguy15

    What is this moderation shit?

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  9. ironbird

    This tape is a fucking pinless hand grenade. Want no part. You all can have it. If death is bullish? Step right up. No Mas.

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