And I am not talking about the street vendors selling turtles. There is a widespread belief, amongst those with brains, that China is a house of cards, readying to implode. Chinese CDS have been blowing out and all stocks related to the land of accounting fraud have been beheaded. Now short sellers are simply pulling out the delicious (no Hannibal) entrails of big American industrial players who have exposure to China, Braveheart style.
Look at the coal sector: decapitation. Shares of ANR, JRCC, ACI, WLT-gone.
The metals are dead men walking: CLF, X, STLD, AKS, MT- laughable.
Retail: TIF, WYNN, LVS, YUM- splat.
Today’s big hits are in IR, FLS, MTW, PCX, ROC, CE, FLR, etc. I could go on.
So, what do we make of this? Do not look to America for guidance, as this country is filled with fucking idiots who would buy stocks on the day of a nuclear detonation over Los Angeles. If China is slowing significantly, there are zero chances for us to rally. Actually, it’s quite laughable that people are buying stocks today, with all of these potential headwinds.
With a Chinese slowdown, our S&P 500 will need to rely on domestic sales: ROFL. One could paint an argument for S&P falling to 600 under those circumstances, as EPS cuts will be far more insidious than any fucktard analyst is factoring in.
Nevertheless, it’s a slow Friday afternoon on the last day of the 3rd quarter, so anything can happen.
With my money, I remain on the sidelines, with a net short exposure. I cannot get bogged down in negativity because that’s a money loser. I am simply acknowledging these risks and keeping a keen eye on them. Why the fuck is TEX so cheap? It makes me wonder about the viability of these firms, under a draconian scenario playing out in China. Keep these things on your back-burner and trade accordingly.
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