We are living in historic times. I’ve been in the market for a long time. I can tell you, without pause, I have never seen a short squeeze like the one taking place in the banks right now.
Banks that were teetering on bankruptcy last week are now ripping higher, to mind numbing levels.
Listen to me, very closely: do not chase the banks here.
I was very tempted to go long [[STI]] and [[UMPQ]] for a trade too; but it’s too risky. Don’t kick yourself for missing an opportunity, others will come.
The first error was missing the rally. The fast track to the poorhouse is when you exacerbate the first error by chasing stocks, near the end of their run, effectively missing the bottom and marking the top.
Be patient and wait for your trade.
In other news, I am happy to be done with [[RIG]] and all of my fucking bank shorts. What a nightmare.
At the present, I have a clean head and will be allocating capital soon.
Despite the new bull market we are in, I still think the next best trade is to sell short. The exuberance is high and the supply of cocaine to money managers is prolific.
They look like shit, but, stepping into [[SRS]], [[FXP]] and [[SKF]] represent fairly low risk/high reward trades now, in my opinion. In addition, with commodity weakness, there is upside to both [[VSE]] and [[CLNE]].
In short, the big money in the banks has been made. Don’t be a fucking jackass and buy here, only to regret it two days from now. Look elsewhere for buying opportunities.If you enjoy the content at iBankCoin, please follow us on Twitter