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
17,078 Blog Posts

Markets and Bitcoins Roar to Highs — Crude Face Plants

The rationale for owning high beta, small caps alongside a pastiche of inverse ETFs and shorts is for days like this. It’s all in the allocation and it’s a delicate game of trying to balance one bias against the other. In the case of my DRIP and RUSS positions: they’re obviously a gamble on a collapse in crude. I paired that with AAL because when said collapse occurs, airlines will outperform.

Then I have a position in LABD, which is 3x short biotech. A bet against the hottest sector can be a wild one, so I have wild upside longs like VUZI and VERI to go with it.

I am short NVDA and BAC — because the former is leadership and the latter is simply a false construct of ZIRP and should get nailed if the yield curve continues to contract. My long position in UCTT is a contract manufacturer for chips and also OLEDs — the hottest segment in the market. It is an effective hedge against NVDA and small cap enough to outperform it on up days like today.

My volatility bet, long UVXY, is the riskiest gamble on the VIX index, essentially betting on surprise rape. To hedge this, I needed to be long the riskiest and most potential upsided longs. Both HMNY and FIZZ fit the bill just fine, with the latter being a company that could receive a takeover bid at any moment.

Although it might not seem like it to the untrained eye, there is a method to my positioning and I do not intend to come out breakeven — as one of you assholes suggested. The way this is supposed to work is I’d take profits on my shorts or longs at an inflection point and then let the other side roll. Since I was unsure and plainly stated that there was a window of opportunity for bears, nothing is set in stone, I loaded up on both longs and shorts, betting on some volatility.

Oh, what the fuck am I explaining anything to the likes of you? It’s not like you can understand more than 10 minutes into the future. I’m very amused by the newly minted passive investment fags out there these days, a whole cabal of absolute faggots who’ve been spoiled by $9 VIX, thinking MCD and CAT are gonna go up forever. A day of reckoning waits for you in the tall grass. It won’t be long before you’ve been stripped of skin and muscle down to the bone, wondering how the fuck you thought it was a fine idea to buy and die.

Oh, BTC is up a gazillion dollars today. Fresh highs, +50% over the past week!

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30 comments

  1. gappingandyapping

    BTMFDCL! Now how do I take out a HELOC and put that money into BTC.

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  2. tonka

    Great stuff. It’s like watching someone juggle chainsaws. Entertaining whether it goes right or horribly wrong.

    As someone who says a prayer for a mild 50% flashcrash every night before he goes to bed, I hope it works out for you.

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  3. lazylambal

    Alot of support around $55 crude though. Maybe just sell the children and buy BTC.

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  4. J Adabese (your pen pal)
    J Adabese (your pen pal)

    FIG

    What of the zebra? What of the poor zebra?

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  5. bushwacker2

    Markets won’t crack until next week before Thanksgiving, remember?

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  6. sarcrilege

    Good thing the market is not rigged at all as one might get the impression from the fake five day decline for the sake of optics. And now the mawket is back to where it was 6 days ago. All is well again.

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  7. Goober

    Great stuff Fly. Good entertainment value and also an interesting way to trade.

    I probably sound like a pussy but I’m only praying for a 10% flash crash.

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  8. wordofmaoth

    Excellent insight. These new readers don’t know how legendary your trade acumen is. Don’t think they understand your sarcasm either. Love the return to trading here.

    Kind regards,
    Mao Junior

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    • Dr. Fly

      I’ve been dormant for past two years, but I’m getting back into it. They’ll learn soon.

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      • reversion

        Fists of death was certainly “dormant”

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        • moosh

          Are you the pink alien constantly making incorrect predictions over and over again, then going away? The last being trump would be impeached by 2017.

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    • ironturd

      If by sarcasm you mean literally inhaling assfumes by the tankful with every shitty contrarian trade out there in the name of ego and noxious trumpfag blog narrative, then yes. He’s back.

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  9. joyous__ending

    I am taking a poll:
    Will there be a day when Bitcoin in dollars $7804; Is equal or greater to the DJIA expressed in dollars $23,458 today.

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    • ironbird

      Polls are the oldest psyop since the fucking Coliseum and before. What the fuck are you really asking.

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      • ironturd

        What he’s really asking is what is your level of education and how much incest porn do you watch?

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      • joyous__ending

        You just confirmed my theory, Bitcoin has room to run and will be around longer than President Trump.
        Try to avoid the f-bomb you just look like a fool shouting the n-word into a microphone.

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        • ironbird

          Ahh. Thanks for admitting it. The Bit is Anti-Orange. Interesting take. Joy.

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  10. iflyjetzzz

    Karl? Karl Denninger? Are you the fly? Because you sure sound like Karl. (not a good thing)

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  11. stocksnblondes

    I’m the asshole and I still say you’ll be lucky to breakeven with your positioning in this type of computer-trading/ETF-dominated environment. Maybe you’d have a chance with 4 or 5 different positions, but not 11.

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  12. wolfdaddy

    Check out bch and btc how many fools traded out of coin into bch last weekend? Ha ha ha

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  13. bushwacker2

    What a wonderful day today! All the bearshitters have been proved wrong again. While they were predicting doom, gloom and the end of the bull the past several weeks, the most logical interpretation of the past four weeks’ price movement was indicative of a market undergoing absorption of the supply. In the previous two days, the market sold off on the heaviest back-to-back volume since mid-August. All of that weakness was erased today. Given the strong close, the market is in position to make new highs. Only a reversal and close below today’s low will threaten a bullish picture going into the Holiday next week.

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    • moosh

      Fly is shopping for a new oven going into the biggest oven holiday of the year…inbetween being vegan and having a normal human diet.

      Good stuff bushwacker2

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