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
21,503 Blog Posts

MARKETS CRASH THRU THE FLOORBOARDS IN A BLACKENED FRIDAY BONANZA

It could be over.

WTI -11%
US 10yr -14bps
DOW -1000
VIX +50%
Gold +0.8%
IWM -5%

This is your crash the markets starters pack, with all of the wildest moves imaginable. You have two questions for me, so I’ll get right to it.

How much is The Fly down today?

Answer: I was born to trade bear markets. I had 10% of my portfolio in TZA coming into today and 55% cash. I’m up 0.6% for the session, now all cash aside from my BITO yolo options trade.

Where will the markets go next?

This crash is happening during a holiday light half session. Very thin and very weak. We are all panicked because a MUG NU VARIANT OF COVID has been found in S Africa and fears of lockdowns are rampant. It will never end. The vaccines are for shit and the COVID business will mutate for as long as we live. What part about this don’t you understand? The other part about this is seasonality. Hello! When the sun is out and people enjoying vitamin D, COVID wanes. Now with winter coming, COVID is back. This is pattern recognition 101. I have not “vaccinated” myself; therefore I’m still able to use my brain.

Cyber Monday looms and we are diving into an oversold condition. You can see for sure and enjoy the comforts of having those details as a valued member of Stocklabs (cough).

My opinion on the matter is two fold. On one hand, we are dreadfully in a massive Federal Induced bubble with companies trading 150x sales. On the other, we never really crash do we? But again on the other, a little air coming out really helps Biden reduce inflation. See how transitory it is with a little help from Mother Market?

My sense is we are news dependent now and we’ll get weaker and weaker until the Fed signals they’ll suck our dicks again. We cannot afford a full lockdown again. Then again, online companies will profit. There are some winners in all this. In the end, this is a traders tape again, but one that requires careful treading. For now, cash is a very good option.

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7 comments

  1. flea

    Yeah … looking more like the final gasps and throes of the November OPEX gamma unwind. Monday it all reverses.

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  2. wilymike

    I never thought those BABA 150 puts or the BITO 35 puts would do a thing. Imagine that . Up 1.3% for the day. Back to even in KOLD. BTU puts doin’ fine.
    Mostly cash. I was thinking that this market was about to go flat, but Eureka! Trading lives!

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  3. bintercorp

    If the virus learned anything from South Africa the new symptoms will make you hijack cars and kill farmers. I’ll be looking out for boneheaded behaviour before I believe its a threat.

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  4. metalleg

    “I have not “vaccinated” myself; therefore I’m still able to use my brain.”

    Truer words have never been spoken…or written.

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  5. awanka

    My snout is twitching, Mr. Fly. There is a scent in the air.

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  6. purdy

    I do hope that they send more stimulus payments soon. As a single mother of three, I’d like to have more help …especially during this holiday season.

    Anyway, with the headlines about a new Covid strain, my only comforts are that I am double vaxed (thanks Pfizer!) and my growing brood and I are protected by living in the most vaccinated state – Vermont.

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