Everyone is freaking out over Chinese credit. We all know they’re first class liars, men who steal for the pleasure, not need. Last night SHIBOR soared. Borrowing rates are going up in China, which is leading the media to surmise a ‘full blown’ manufacturing crisis is in the works. Don’t believe everything you hear on the goggle box. The fact of the matter is credit is getting tighter everywhere because rates are rising. Remember, just because rates are higher, we aren’t destined to die in a vat filled with pig vomit. Banks bank coin when spreads widen.
The fear is the loss of the Fed bid, plain and simple.
I am getting crushed on the 40% of assets long today. IMMR and YGE are coming in pretty badly. I know the selling is overdone. More than 90% of stocks are lower today, typically a buy signal for stocks. But I’m not worried about losing money on just 40% exposure. My losses will be made up in spades if and when I nail the next inflection point. I need to time it perfectly, get in big, then get out.
I intend to make 10% on my next trade, inside of 2 days.
For now, I am utilizing the tools available to me to find stocks on sale. No one wants to “get back to normal.” We want POMO and we want it all the time.
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