Keep a close eye on the price of corn. Should corn drop, while the price of ethanol remains high, ethanol stocks will fucking rip the heads off the shorts sellers.
Already, there is nice action in [[PEIX]], [[BIOF]], [[AVR]], [[XNL]], [[GPRE]], [[MGPI]] and [[VRNM]]. Unbeknownst to me, [[VSE]] is lagging the group today. On any dip, I will be buying more.
As you know, the general market tone is bearish. Frankly, it’s time to take some money off the table and get short.
In my estimation, [[FXP]] and [[SRS]] represent the best “value,” playing the downside.
With oil expensive, I love [[FTK]] here. From what I understand, the company should be giving quarterly guidance sometime this week or next. I know a few drilling companies that operate in their geographic region; they are net buyers of the stock. If they could get their fucking act together, the stock can print as high as $50.
Finally, it’s worth declaring, gold will be printing all time highs soon. Write it down. Within the space, I like [[DGP]] and [[AUY]].
Playing the downside, I default to the “Reverse Four Horsemen”: [[FHN]], [[DSL]], [[FED]] and [[CORS]]. And, for good measure, I hate [[LEH]] and [[MER]] too.
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Good calls Fly. You’ve been beating the ethanol drum for a week or so and it looks like you are being rewarded.
Nice post, thanks for the ethanol stocks.
Don’t forget SLW, when you’re doing the Midas. Silver’s trading at some 53 ounces to an ounce of gold.
And that’s too freaking low, historically speaking. Just like gold has to catch oil, silver has to catch gold.
Another leveraged gold play to keep on the screen(royalty deal, like SLW is on silver) —
RGLD.
And for “ETF” type buyers who want SLV and GLD rolled into one, don’t forget our Canuckistanian friend, CEF.
farmers are planting less corn for more soybeans due to margins.
Corn is not going down.
PEIX is over after today. Ethanol is the worst idea this country has ever seen.
In summary:
Short the California banks.
Then short them again.
Ethanol stocks will continue to press higher, due to the overwhelming bearishness. It’s a Costanza trade, if you will.
We all hate it. Yet, you and I both know, the Government will not stop the burning of corn.
In addition, last year we had record plantings of corn, yet the price sprinted higher.
People hate corn. They want it lower. I say give it to them, at least for a trade.
Fly – any opinion on CRM as a long?
I have a friend at mysql.com, which just got bought by JAVA. She says they’re doing really well, fwiw.
so If I were to only add 1 bank short, what’s your top bank to short?
Everyone loves CRM. But the valuation is bananas.
One bank short: MER
C looks like a short if it drops below $22. Be careful today as we will prob bounce around 1410.
about time JAVA did something right. polesmokers.
Has anyone been warned of the dangers of trying to smoke POT?
Panama Red
Acapulco Gold
Mexican Green
Sensimilla
http://www.marijuana.com/
While I agree MER migrates south from here, it is not a bank, it’s a securities firm.
FITB is a bank, short it.
FED is a bank, short it, twice.
DSL is likely going to $5, at least. It just broke through $9. It might actually be your best bet, as it could just slide down the hill like one of those Santa Monica hill houses right after a long rain.
Just bought KRE (regional bank etf) for a daytrade. Keeping an eye on GS. It hasn’t moved much and if it goes + (possible in next hour or so) then time for some more daytrading foolery.
Holy shit, MXC is the craziest stock I have ever seen.
Mr. Fly:
Uncle Howard made me $$ with PAAS earlier this year.
agree on MXCI have a preborrow on MXC for a whopping 1k shares and am too scared to short it
agree on MXC have a preborrow on MXC for a measly 1k shares and am too scared to short it
HKN wheeeee. I got pinged on this and passed…
juice-
i have been following CRM for quite some time.
software that any junior coder could crank out in a weekend.
its the new pets.com
fwiw, cal hates it more than you guys hate POT.
OMNI is on fire
null, thx
btw, I don’t hate POT, even as I quit many moons ago … but still loves the aroma … schweeet smell of debauchery
nullpointer: true, but they’ve got the bizdev “thought leader” douchebags going ga-ga. You can’t write a kick ass sales team on Rails.