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
19,895 Blog Posts

This Sell Off is Filled With Shit — But I Sold Anyway

End of year business. Men do not want to risk it all — just for another percent or two. Make no mistake, this sell off is stupid. The rationale, based on manufacturing data, is laughable.

Manufacturing activity in the U.S. continued to contract last month, the Institute for Supply Management said. The ISM Manufacturing PMI dipped to 48.1 in November. That’s below an estimate of 49.4. Stocks hit their session lows after the data was released.

But there is much to lose for managers who rely upon the calendar year to get paid — so they will most assuredly be selling into any fear. Taking a quick gander at the market, there is an overabundance of it now. Consider the fact that low brow biotech hand grenades were the leading sector into today and now look at SAAS, -3.8% for the session.

Here’s the other thing that makes no sense — the dollar is getting smashed and bond yields soaring, +5bps on the 10yr. So both bonds and stocks are getting lit, but oil is up. Try to figure that out. You’d think gold would be up, but it’s not — down. But gold miners are UP. Confused yet? It’s by design.

When markets get confusing like this, at the same time I see high beta stocks getting routed, I step aside.

I am now 95% cash in my trading. My Quant has bee liquidated, aside from a few stocks, and will be re-allocated later on today, with a new stratagem.

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

5 comments

  1. natehois

    Top 10 stocks held by hedgies (from 13f)
    MSFT
    AAPL
    AMZN
    JPM
    GOOGL
    V
    JNJ
    FB
    BRKB
    PG

    Hedge with TMF, evenly weighted, quarterly rebalance

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

      Top10 stocks held by mutual funds:
      MSFT
      AAPL
      AMZN
      JPM
      GOOGL
      V
      JNJ
      FB
      BRKB
      PG

      Top 10 stocks held by institutional investors:
      MSFT
      AAPL
      AMZN
      JPM
      GOOGL
      V
      JNJ
      FB
      BRKB
      PG

      Top10 stocks held by individual investors (indirectly through ETFs and other funds).
      MSFT
      AAPL
      AMZN
      JPM
      GOOGL
      V
      JNJ
      FB
      BRKB
      PG

      The reason? Top 10 stocks in the S&P500 by market cap
      MSFT
      AAPL
      AMZN
      JPM
      GOOGL
      V
      JNJ
      FB
      BRKB
      PG

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

      You are much better of buying SPY than the basket above. If your equity portfolio is 100% Mega-caps, that’s not good.

      • 0
      • 0
      • 0 Deem this to be "Fake News"
  2. bambam

    LK is the gift of year from The Fly

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

Leave a Reply