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
22,274 Blog Posts

RISK AVERSE STOCKS RIPPING WITH MARKET

I found what I believe to be a sustainable salient in this rally, hidden under the largess gains of tech. The staples are rebounding strongly today, names like CPB, PEP and STZ are behaving like they want higher. It’s worth noting if we are entering a 1970s type stagflation, only commodities are safe. Nevertheless, we are rallying now — with the Dow +620 — and I am barely up 0.2% for the day.

Why is this?

I trade counter markets and very rarely do I trend when markets are up big. The reason why I am +48% YTD is precisely this reason. I ebb when you flow and flow when you ebb. Knowing this is also not sustainable, my challenge will be to know when to hop onboard the sheep train — because over a long enough time line — the sheep always lead the masses to the pasture.

Into the final hours, I will contemplate whether I need a hedge or not. This tape looks good — feels ok — but one can never be caught leaning to heavily one way or another.

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