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
16,985 Blog Posts

Stocks Bounce Hard Off the Lows; Yield Curve Widens

We had a correlations between the 2s and 10s yield curve today, which widened to 70bps and the market, with the fag heavy Nasdaq regaining more than 50 points from the lows. The Dow was off by 205 and barely closed down 100.

Men seated in wheeled chairs were out and about talking extremely greasy, elated by the decadence of it all.

NVDA just posted earnings and as expected, they were spectacular.

NVIDIA sees Q4 revs $2597-2.703 mln vs $2.44 bln Capital IQ Consensus Estimate
NVIDIA prelim Q3 $1.33 vs $1.07 Capital IQ Consensus Estimate; revs $2.640 bln vs $2.36 bln Capital IQ Consensus Estimate

However, the basis for being short NVDA has little to do with earnings, but more to do with the price of the stock.

At 55x earnings and more than 13x sales, the stock is already priced for perfection — higher by 92% for the year.

Any upside action in the after-hours will be faded tomorrow. You can take that to the bank.

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20 comments

  1. firehorsecaper

    There are yield curve flatteners and yield curve steepeners (trade types). Credit widens or tightens. Parallel shift higher in rates most likely with slight flattening as Fed funds rate is increased. Credit can not tighten much more and central bank accommodation is unwound (ECB 1st in line), then Fed, lastly BoJ.

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  2. tonka

    You want Ramp Capital? Check out the close on $URA.

    Yellowcake to the moon!

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  3. ironturd

    Man killin these calls

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  4. sarcrilege

    So predictable. FED always BTFD.
    https://tinyurl.com/y8s2az8t

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  5. Dranged

    Thank you for your great works good sir.

    Just coming off the Nvda call, long term investor, I humbly advise you to cover your short before market open.

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  6. stocksnblondes

    Fly man, not to be a whiner cause I love this site, but it has too many pop-up ads and shit. I typically access it via my mobile and it drives me nuts with the frequent pop-ups.

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  7. Dr. Fly

    Sorry, but fuck off. How’s that for reader sympathy? Do you like it?

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  8. bushwacker2

    Is it “EnVidia” or “NaVidia”? I don’t care, I’m just winning today as certain short sellers get squeezed.

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    • bushwacker2

      The NVDA is exhibiting similar behavior around earnings as the last report in August. But this time the pattern is much stronger, as it is hitting a 52-week / all-time high today. Being that it’s up 5.5% today and volume is 550% more in the first hour of trading than normal, I guess the institutions are voting against the bears today.

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  9. wapiti

    Hey el Fly. Did you get out of NVDA in time or are you swatted flat against some truck windshield?

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