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
18,117 Blog Posts

Markets Meanly Revert, Dow Slumps For 8th Consecutive Day — Barreling Towards 200 Day

All of the high beta tech stocks and biotech are reverting to their mean today. This isn’t a reason to panic, although I would suggest that seeing the Dow off for an 8th day in a row and steaming for the 200 day moving average isn’t awe inspiring.

Also, we should consider that small cap stocks have been wantonly outperforming large the past few months — typically a sign of excess degeneracy. The last thing I want to do here is overthink and begin to read the news and get negative.

Le Fly needs to mediate and find his inner-zen. Gone are the days when angry Fly would punch holes thru sheetrock or slap people in the face with hot slices of pizza. Now I’m a reformed man, a person who just executed 34 of 35 winning trades in a row.

All that said, I’m hedging here — taking 10% of my cash and buying DRIP and SOXS. This isn’t a bear bet, inasmuch as it is a preventive hedge against a forlorn supplication into a dark and craven world of pain.

If you enjoy the content at iBankCoin, please follow us on Twitter

5 comments

  1. chuck bennett

    Can we buy CBLK yet? It’s looking dreamy

    QD is trying to bust a move.

    Regards

    Chuck Bennett

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  2. chuck bennett

    We have seen this large of a divergence only twice since 1970

    Difference between the Dow and Nas.

    Either Nas goes down or the Dow is going back up
    Regards

    Chuck Bennett

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  3. cash cow

    Le Fly,

    Curious, what is your average trade size on these trades? I feel historically that for my trades, the $5k-$10kers win most of the time, but he $50k-$100kers punch me in the dick without fail.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
    • butte2butte

      I think this is an instance of relativity for a guy like Fly or anyone’s account size. Also if you go overweight on a position, it takes less of a drawdown % wise to feel like your balls got boxed. I find that most people taking a smaller position enter the trade at a given price and go from there, but when taking a larger position leg into it because they don’t have the conviction to go all in at once and usually means legging into a losing trade.

      • 0
      • 0
      • 0 Deem this to be "Fake News"