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
19,842 Blog Posts

My Fancy Pants Have Been Lit on Fire

I’ve been long gold, on and off, since November of 2018. Last week I sold near the top and felt powerful, like my balls were made from steel, impervious to the market. So I got fancy and took a short position on gold, via JDST.

Today I got my pants lit on fire and, subsequently, my balls.

I sold JDST on this gold spike for an 8% loss. I also added two gold stocks on the long side to my trading account.

The lesson to be learned here, and I’ve already learned this lesson a few dozen times before and will probably learn it again a few dozen times before I go, is to avoid being fancy with trades.

Do you like AAPL?

Good, then don’t ever short it, no matter what. It’ll just conflict you and end up robbing you of your spirit.

Moving on, stocks look soft, but I’m brazenly optimistic for something wonderful to happen soon.

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13 comments

  1. ferd

    Trade war resolutions don’t seem to have the stock market staying power that they used to have.

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  2. numbersgame

    China trade deal! This time, we mean it. Market hits intraday ATHs.

    Now why is it that USTs are higher than the last time we hit ATHs in April, despite the recent bond bloddbath ? As a reminder bonds were also higher in April than they were the previous ATHs.

    Trump was premature. Should have waited until after tomorrow’s retail report

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  3. WrongView

    Good time to switch to short gold?

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  4. ferd

    Yo Numbers, If bonds don’t hold recent lows, there’s no car in the elevator shaft. 30 /zb chart set-up short. https://www.youtube.com/watch?v=exQSiioHrqM

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    • ferd

      …BTW, I covered a bond short (TBT) earlier in the week. I am not reshorting here.

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    • numbersgame

      That’s the beauty of the whole thing. I got burned in 2008 for ebing ahead of the curve, because I’d short then the SEC would say that you can’t short finacails anymore (literlaly). I’d go short, then the Fannie and Freddie would get abiled out. I’d go shotr, then the FED sais they would loan to non-banks.

      However, Long Treasuries has the dual benefit of
      1) FED support (as with all assets)
      2) negative correlation with stocks.

      While I *hope* to profit in bonds during the next 3 months, I *plan* to profit in them during the next 2 years. I’m still much less invested in bonds then I was in March because I know rates can increase i nthe short term.

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  5. ferd

    I guess that with trade war resolved, no need for rate cuts. Watch 1PM auction of 30yrs.

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  6. sia

    soooo… what is an 8% loss compounded annually? lol

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