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

Volatility Sinks to New Lows, Dollar Ravaged, Stocks Fly: What’s Next?

There isn’t fear in the tape, which is a problem. Set that aside for the moment, there are several investment themes worth pursuing here in light of recent news.

Here is my checklist.

1. China is accelerating. This is bullish for commodities and companies who do business in China.
2. If Macron wins, the ECB gets to rig their markets some more.
3.Trump playing ball with establishment means he will get stuff done, such as lower corporate tax rate and infrastructure bill.
4. Weak dollar is great for American exporters.
5. Rising bond yields infers inflation. If we do not get it, rising yields is a net negative.
6. Oil is basing out around $50, ahead of Saudi Aramco IPO. I like my chances for a breakout ahead of it.
7. War

Investable themes

China-centric plays, such as CLF, CAT, FLS, YUMC, BABA, JD, CTRP. There are plenty more.
European banks: CS, DB
Steel/materials: X, ATI
Weak dollar winners: GM, F, PG, LNG
Oil: CLR, OAS, CXO
War/nation building: KBR, CSL, RTN, OA, ESLT, just to name a few.

In the event of war, I’d expect to see the knee-jerk reaction to the downside, quickly digested, followed by monies being allocated ‘to the winners.’ Without war, the Trump agenda and booming Chinese economy come into play. There are several ways to win here. I don’t want to sound to overzealous after a giant move higher, but this move will not stop until all options are exhausted. There is a good chance we’re going to see a massive market rally over the next 12 months.

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17 comments

  1. it is showtime

    Man
    U
    Fac
    Tured

    https://www.youtube.com/watch?v=3J2PlJmkvog

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  2. sarcrilege

    China growth is fake growth. All by massive debt issue. The non-performing defaults are coming. Soon.

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    • thinair

      they won’t, the govt will swallow or cover them up, and Chanos will be squeezed into oblivion.

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  3. thinair

    Yawn..

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  4. rigged game

    500 point 2-day rally. And I am long T, NIKE, LULU, X
    and a shitload of gold and silver. ALL DOWN.

    I must be the DUMBEST investor on God’s Green Earth.

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    • natehois

      That spot is filled by Showtime… has been for some time now… roughly 9 years……

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    • thinair

      exactly my point earlier. been through it. It worked at times, and made a lot, but very draining. Now realize its not worth it. Have to play it smarter

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    • it is showtime

      How more people (commoners or analysts) don’t see how bogus WallSt is or has become, how foul wallst is, is an epic historical flop

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      • cancel19

        Wall Street is like silicone titties. They may be fake but they are a joy and satisfaction to play with!

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  5. wolfdaddy

    I expect 50 cents crew to fly a plane into a building any day now

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  6. john_galt

    7

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  7. soupbone

    War trade and infrastructure trade cancel each other out, depending on war. Upon war a rush to safety means $US, US treasuries & gold and the stock market tanks in a fearful fit. At the moment the market does not believe in war. Should war break out all we will see is shortages of this and that commodity, even fucking lumber.

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