Today’s the Same As Yesterday, Just More Optimistic

Let me excuse myself; I was out of the 9th floor today in an all morning conference and only just now returned.

And here I found the market in full on rally mode, at that! I was curious as to why, so I looked around, and all I could find was an announcement of some insipient solution to the European crisis. Wow, what excellent timing! We were in need of just such a solution too.

So, let’s challenge this, shall we? What’s changed from yesterday?

1. There’s an alleged solution to the Eurozone crisis.

– There have been numerous alleged solutions to the Eurozone crisis before now, from massive bailout funds, to BRIC nation intervention, to outright debt restructuring.

2. It has the backing of Germany.

– No, it has the backing of Angela Merkel, who is increasingly not in control of German affairs, and has supported any number of the prior solutions before now which have failed to gain traction.

3. Europe has a plan to stabilize its banks should Greece default.

– Germany has a plan to stabilize its banks if Greece defaults. The rest of them, as best as I have heard, do not. And Germany is the only one with the budget to pull it off anyway. The rest need aid of the ECB, as no country has the authority to print euros without democratic consent of the others and no country presently has the savings.

All of these rumors are long on speculation about what they will do to the markets, and short on substance that would make them believable or useful. I don’t want to hear how Angela Merkel wants to save the EU. I know she wants to save the EU. She’s been saying that shit for going on 2 years now and has nothing to show for it.

I don’t want to hear that European member countries have a plan to stabilize their banks. I want to hear what their plan is to stabilize their banks. That’s a big difference.

Nothing has changed from yesterday, including my opinion of the market. The talk is originating from the same idiots I always call out, desperate to understand what’s going on. Fuck you, financial news cretin.

This looks and smells like an obvious bear market rally. It has huge volume all inside of one day. If you had looked at the levels of shorted stock, it was getting enormous. We were about due for a big run up. But that doesn’t mean I’m suddenly jumping for joy to own more shares of my favorite companies.

Quite the opposite…

Yesterday, I added to BG for $57. Today, I took 7.5% profits, selling back those shares for $61.35.

And then I doubled my short in UCO for $31.06.

I also added to CLP yesterday, but I’m going to hold on to those. I like the company, and think it does fine. I am waiting with baited breath for them to announce their property swap, catching the talking heads off guard and creating a rush to buy their shares in the process.

They go back above $20 inside this year, or I eat my silver pocket watch.

If you enjoy the content at iBankCoin, please follow us on Twitter