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
23,417 Blog Posts

Fucktards Like Rate Cuts

Unfortunately, the market is run by a bunch of pussies, unable to take losses like men. Back in the old days, investors took “hits” like champs. They’d come to work, lose 30% of their money in a fucking crash, then proceed to jump out their office window.

Not today.

Today, we have a bunch of jelly sandwich fuckers, always in need of bandaid solutions. If it’s not a stimulus package, it’s a Fed rate cut. Quite frankly, if I were President, I’d tell investors to “go fuck themselves,” and live life like the “greatest generation.” As you know, I’m talking about the true “playa’s” who endured 1929.

The Fed funds rate is at 3%, yet the bond market is pricing in another 50 bps cut. What the fuck? Do these idiots learn from past mistakes?

Answer: Of course not.

They are going to kill us all, with their insatiable demand for cheap or “near free” money. If the Fed cuts rates again, I will clean out my personal savings and put it all in gold. Fuck this paper currency crap. Better yet, “The Fly” will move to China and own yuan.

As for today’s trading:

I’m long a considerable amount of inverse etf’s, almost fully invested. Yesterday, I bought [[SKF]], [[EFU]], [[SMN]], [[DUG]], [[REW]], [[FXP]] and I shorted a little more [[LEH]]. Pardon me for not mentioning them in my retarded “Fly Buy” posts; I was quite busy.

Looking at the banks, I’m shocked they’re not lower—considering how bad MBI‘s numbers were. Without doubt, low-IQ fund managers are piling into bank stocks, like stock robots. All these idiots do is rely on their stupid models that say “buy bank stocks when the Fed cuts rates,” regardless of the news. They’ll buy these same stocks, everyday, for the next six months, even if the world is on fire.

They’re that committed to their “models.”

Finally, with my money, I will not go long anything. I do not like the risk/reward of being long, ahead of tomorrow’s non-farm payrolls data. If anything, I’ll sell short the banks again, via SKF.

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61 comments

  1. calvino

    amzn doing an unnannounced buyback with your money, wouldn’t want to take anything away from Jeff, at your expense. That bullshit move will end.

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  2. goatbroker

    “then proceed to jump out their office window”

    http://www.downside.com/bldgjump.gif

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  3. Wimpy

    Life was tough in them days!

    You forgot to mention the bears who’d get skinned for 30% in a day in a rampant bear market.

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  4. MarketRaider

    Wow, this market is seriously bulletproof. Sometimes I cant believe what I am seeing. With all the bad news that has come out this market is still trading like its last year. Truly amazing.

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  5. calvino

    MA margin improved from five plus to sixteen. How the fucc did that happen when the credit jerk offs are getting put in the penalty zone with 29 percent rates, forty dollar late fees, fifty dollar overcharge fees. yea, that will last – wait til these end zone losers tell the banks to go fuckle themselves and their balance. ma setting up back to highs and into short territory. McFly is right – these fuckfaces think the shitparade will keep running up the pipe like bizniz as usual. stockfucks clinging ontobonuses at your and mine expense.

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  6. Juice

    beware of the morning bear trap … they will make you puke those shorts you laid out there on the open sometime this afternoon, before the next decline

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  7. Pudfucker

    75% of this game is understanding how market particpates will act at different points in the cycle and then front running the fuckers in anticipation of their actions. You correctly understand that at this point in the cycle banks will be bought. Yet you are fighting it. Odd.

    Maybe this time it’s different, but I doubt it.

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  8. MarketRaider

    Actually it looks more like a bull trap than a bear trap this morning.

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  9. are we paying attention?
    are we paying attention?

    For you caffeine lovers, from notablecalls:

    Hansen Natural (NASDAQ:HANS): Coke sniffing around? – UBS
    I hear UBS analyst believes KO has been “sniffing around” Hansen Natural (NASAQ:HANS) and that an acquisition by KO would be a no brainer as it would save $500M in manufacturing immediately. The analyst believes a potential sale is more likely in the $80-$100 range rather than lower speculation of $60. The firm views recent weakness as a buying opportunity.

    Notablecalls: Makes me say hmmm…. This one will get attention today! Bold call by UBS!

    PS: I now hear the takeover comments were made on the box and are not included in the actual note. (although the note highlights HANS as a takeover tgt).

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  10. The Fly

    The cycle has not even begun.

    It’s silly to “discount” a recession that hasn’t even started.

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  11. MarketRaider

    DId I ever mention I hate LEH?

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  12. JakeGint

    Pud — You don’t “buy banks” before their credit problems are fully washed.

    Do a little history search on upticks in bank failures. We haven’t even been seeing many yet.

    Banks will follow the path of the homies… ie — pallid struggles to claw back some lost ground and “waboom!”

    Homies started that about three years back, they are still not in the clear.

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  13. calvino

    Raider.. did you work for the Brothers?

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  14. grouchy old man

    In them old days after ’29, my buddies and I used to go down to the office of our “customers man” and commiserate about all our stocks. We didn’t have IBC, we had slips of paper and pencils.

    Times were tough. Fear and despair were rampant. We needed someone to throw our bowls of soup at, but trader/servants were in short supply.

    My fear is we might have a repeat of them days. We had Hoover back then. Now we have Bush, Bernanke and more assclowns than you can shake a cane at. God help us.

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  15. MarketRaider

    No calvino I am just short them right now and they trade like a waddling crack whore if you’ve ever traded a waddling crack whore before that is.

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  16. Juice

    The recession started last summer, obviously.

    Unless of course, you don’t eat or use oil products. Then, in that fantasy world of governments supplied/fudged for state agendas/purposes, stats, there is no recession.

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  17. JakeGint

    Grouchy– your memory doesn’t serve you.

    Hoover raised taxes and import barriers through Smoot Hawley. Combine that with the “chicken in every pot” socialist that followed him up and we got the Great Depression.

    Bush cut taxes and is a free trade advocate.

    You must be talking about the future, if we elect an asshat commie Democrat.

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  18. Pudfucker

    Johnny, “they” sell banks when the yield curve is flat or inverted. They buy banks when the curve is positively sloped and steep.

    The curve hasn’t been this steep since 2002-03. Good luck fighting the herd.

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  19. JakeGint

    Pud —

    Bank reserves haven’t been this impaired since 1990, or maybe before even that…

    The slope of the curve is immaterial if the banks cannot lend at any rate.

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  20. MarketRaider > Wow, this market is seriously bulletproof. Sometimes I cant believe what I am seeing. With all the bad news that has come out this market is still trading like its last year. Truly amazing. <

    Are you serious! Everyday a few stocks get their heads lopped off. You must be drinking the Kool-Aid rather than the Monster to be so hypnotized!

    BHI the other day, CAM & ARAY today and I’m sure there are others …. while you are mesmorized by ETFs, Rome is burning!

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  21. zephler

    fed day pattern – told ya!

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  22. TraderCaddy

    Forget about how you think the market should trade. Just watch price action. If the stock goes up in the face of bad news then it has been discounted. Don’t think too much. Trade what you see not what you believe.

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  23. chivasontherocks

    pud and tradercaddy,

    both spot on

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  24. alphadawgg

    KO to buy HANS?

    JSDA rally on that news?

    BWLD also looks interesting here.

    (Am I having a Costanza moment?)

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  25. calvino

    ugly shoes green, not for long

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  26. Juice

    Bear trap sprung

    this will be nothing … wait till next week

    bears will dine in hell

    but before then bulls will dine in hell

    welcome to the machine

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  27. Pudfucker

    Jake: I’m not saying “they’re” right for buying when the curve steepens and that they won’t change their mind later.

    I just know that when the curve gets as steep as it is now, the initial reaction by stockjockeys is to buy banks first and ask questions later.

    Just look at the price/volume on BAC, WB, WFC, USB, since the surprise 75 basis point cut. That they’ve been buying the banks with both hands since the 75bp cut in the face of the potential for many billions more in impairments/writedowns if the monolines go busto should be proof enough.

    (As a side note, that they’re buying banks with that overhang suggests to me the big swinging dicks believe if the monolines do explode, Uncle Sam will backstop them).

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  28. MarketRaider

    So its the MBIA conference call and now the possibility of not downgrading them is what’s causing all this craziness? Unbelievable.

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  29. chivasontherocks

    UNCLE SAM will and has to imo

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  30. alphadawgg

    Pud

    Good comment. Institutional buyers and mutual funds, tend to be longer term in scope and are seeing banks as “bargains”, looking down the road. We are seeing early buyers who are value players coming into the market. It’s hard for them to walk away from these stocks right now.

    They are not as nimble as we are and sometimes need to take several days or even weeks to scale into a position.

    Once all the write-offs are done, the comps will look decent. The question is, how long do the sub-prime write offs go on? Some must be thinking not much longer.

    I’m still staying away, but it is interesting to watch.

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  31. chivasontherocks

    alphadawgg,

    a better question might be is not how long they will go on, but how much they might end up re-couping some of those writedowns.

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  32. zephler

    fed day pattern!!!!@ I told you!!!

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  33. Gregory P

    There is no way the fly is fully invested and holding inverse ETFs through this. Either he lies, or he is banking coin for wall street bankers.

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  34. TraderCaddy

    I am going to put a claim in for Daytraders Carpel Tunnel Syndrome.

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  35. Alvari40

    Greagory,

    He is fully invested in reverse ETFs AND goes for a walk during reversal day? Yeah – rather suspect.

    In the mean time, I am banking my coin via UWM and ROM from yesterday. Will be looking to add more today if we hold when the boys get back from lunch.

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  36. alphadawgg

    chivas

    windfall profits are certainly a big consideration.

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  37. http://news.morningstar.com/newsnet/ViewNews.aspx?article=/DJ/200801310036DOWJONESDJONLINE000019_univ.xml

    “The next shoe to drop could come in late February when insurance companies have to ‘fess up on their portfolio holdings. It’s unlikely to improve their stock prices and safety ratings. Two ways to diversify and profit from any unsettling financial-services news ahead: Sell iShares Dow Jones U.S. Insurance Index Fund (IAK) short, or buy the double-beta inverse ETF ProShares UltraShort Financials ETF (SKF).”

    http://news.morningstar.com/newsnet/ViewNews.aspx?article=/DJ/200801080051DOWJONESDJONLINE000026_univ.xml

    The best foreign stock opportunities after the coming correction could be where you found them last year — in Asia and Latin America. Among the standout funds for 2007, nearly all invest in Latin America or Asia, or a combination of Brazil, Russia, India and China (BRIC).

    Top-performing Latin American funds in 2007 included Direxion Latin American 2X (DXZLX), which rose 83.7% for the year, and iShares MSCI Brazil (EWZ) up almost 75%. Top China funds included AIM China (AACFX), up 75%, and Nationwide China Opportunity (GOPAX), up 74%.

    A BRIC index fund, Claymore BNY/BRIC (EEB) also made the list, rising almost 68%. Don’t overlook Market Vectors Steel ETF (SLX), which added about 84% last year, or iPath MSCI India Index ETN (INP), which gained 72%. <<

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  38. Alvari40

    Anon,

    So, are you loading up now, willing to take the pain and holding for 2-3 months? What is your investment/trading style?

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  39. Buying SKF on pullbacks. When we get the final leg down which I expect to bottom sometime in Apr/May then I will buy the BRICS and select financials like JPM/WB/AIG that haven’t been diluted with foreign currency.

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  40. jeff -

    shorts are almost done covering, giddy up for next leg down boys

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  41. Alvari40

    Anonymous

    Thx.

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  42. JakeGint

    Brazil right back to the honey hole again at $74.50

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  43. chivasontherocks

    Jake,

    do you have the investors intelligence #’s by any chance?

    thanks

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  44. Alvari,

    Note that I corrected prior statement to read “that haven’t been diluted with foreign currency” rather than “that have” … my regrets.

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  45. optimatis

    asia didnt follow yesterday s final hour selloff .. it dazzeled me a bit, therefore i didnt go short today ..

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  46. Vince Lombardi

    Fade the rally. Buy skf

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  47. CAP

    Numbers to watch

    Dow – 12681
    S&P – 1386
    Nasdaq – 2408

    If we close above these numbers its time to go long. This could be a countertrend bear market rally but who knows how far it can go. My bet is the big boys come back after lunch and push this up further.

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  48. Derek

    Fuck yes!

    These guys are a bunch of pussies. The inflation rate is only going to keep on a steady rise because of this crap.

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  49. JakeGint

    Chivas… as of yesterday, 40.2%, bullish, 32.2% bearish…

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  50. CAP

    200 point up day today.

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  51. Juice

    piker bears getting their clocks cleaned

    just in case you didn’t think the market could go up any more

    the meat of the bear trade has been had, for a little while, barring another bear trap or two

    bulls will have a stampede & trample day within a week … stay short at your financial peril

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  52. anybody buy into the potential for major short covering of derivatives by the end of the day as it is the 31st?

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  53. alphadawgg

    The market is gorging itself on BWLD.

    Bot some at 24.72, shortly after my “Costanza moment”.

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  54. JakeGint

    Bruce,

    You sure you don’t mean “baby” bears?

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  55. jojo

    Have you become one of those old men you used to kick down elevator shafts?

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  56. CAP

    Resistance at 12600 Dow. We break it and we’re off to the races.

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  57. Juice

    newby, piker, baby, bears w training wheels

    all the same

    the bear trade is done, and this will cause a stampede to cover & get long, if not tomorrow, then next week

    if there is one more downtrade, take your shorts off the table & go to cash, if not go long

    the bears will have another trade before all is said & done but don’t overstay your welcome on the downside

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  58. JakeGint

    Sorry, just noticed that the above link doesn’t work. Here’s Fly’s attempts to imitate Lawrence Tynes at the expense of his neighbors.

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  59. chivasontherocks

    Jake,

    thank you very much

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  60. bulliSHIT

    how was there such strong buying ahead of the jobs number tomorrow? if the number is bad, we’ll open down 300-400 pts. do the BSDs know the number will be good? doesn’t make sense why anybody would be buying ahead of an unpredictable figure, unless you’re a long-term buyer of course.

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