Shares of CS are down more than 25% this morning on basic fundamental math which says the company is at risk of default. The 5yr CDS are at RECOURD highs; but more importantly, the 6mo CDS are at 1500 — nearly a 1000bps inversion over the 5yr. In other words, it’s over.
Shares of nearly all European banks are HAMMERED to bits and pieces, whilst at the same time — Le Fly reigns supreme +210bps thanks to a very large overnight UVIX position.
Our regionals are getting SMASHED again with PACW and FRC down 15-18%. I’d like to offer you even worse news if I can — but that’s all I got for now.
Do not underestimate the asshole dip buyers. You saw those fucking retards out there on Twitter yesterday — jerking off to shares of FRC. Those animals are still on the loose.
As for me, I closed out UVIX and opened a small 10% position in FAZ — just for fun. Should we gander into another credit crisis, I’d be very sad if I did not profit from it in some sort of fashion.
My playbook is as follows:
Avoid morning nonsense. Re-enter heavily SHORT into the afternoon and hope for the very worst this evening.
If you enjoy the content at iBankCoin, please follow us on Twitter
I sleep like a baby, being fully allocated to PHYSICAL metal, miners and cash. I am with you in spirit.
A C C E L E R A T E
I’m in very short term treasuries. Preservation of capital, waiting for the dip buyers to be eviscerated and then I’ll buy when their blood is in the streets.
Smart man
Fun to watch!
whic h is it? You said you dumped UVIX yesterday.
In a 100% long book, I closed down 1.53% for the session — all thanks to UVIX. In total, I lost about $40k in UVIX today, meaning that without it I’d be up maybe 4%.