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
22,548 Blog Posts

Asshat Trading

The market is ripping higher thanks to the collapse of crude. The unfunny part about this commodity bust is the amount of hedge funds long the space. It’s revenge of the banking nerds and they have their water pistols pointed at the guys who have been poleaxing them for more than a year.

Keep in mind, the people who are gaining ground here are badly damaged. The funds that are long banks are far gone. Redemptions will be made and many of them will go out o’ business. However, with the commodities getting busted out, the best performers are now suffering, especially those who had short banks/long commodities pair trades on.

What does this mean?

Well, it means death for the financial industry, especially the trading desks who have been heavily long commodities, like Goldman Sachs Group, Inc. [[GS]] and Morgan Stanley [[MS]] .

Literally, there is no place to hide, unless you are a ‘space alien magician’ and possess the ability to dodge nuclear bomb hand grenades and venomous snake bites while asleep.

As you know, dollar strength is the foundation of this fuckery. Keep in mind, much of our export growth is directly attributed to the weak dollar position. If you take that away, we lose our edge.

Recognizing how the energy trade is impossible, I sold out of some of my oil longs, Ultra Petroleum Corp. [[UPL]] , Occidental Petroleum Corporation [[OXY]] , Suncor Energy Inc. (USA) [[SU]] , in order to raise cash and stop the bleeding. I will buy more Agrium Inc. (USA) [[AGU]] , under $80. Thus far, that was a stupid trade.

In addition, I will hold off on any further [[SKF]] buys. I prefer [[FXP]] instead, considering it gets you short PetroChina Company Limited (ADR) [[PTR]] and SNP .

Truly, this is a market made for an asshat.

Enjoy.

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12 comments

  1. Topper Harley

    Fly – you still holding VMC??

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  2. The Fly

    I am short VMC.

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  3. Aris

    this market is clueless. crude broke, because some fund flushed their position, just like when it ripped on the back of those semgroup idiots. frankly, it’s probably those fools again, only now dumping long positions to raise cash.

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  4. The Fly

    FCX is a fucking steal here, barring the end of the world as we know it.

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  5. Topper Harley

    The only thing that’s stopping me from shorting VMC is their earnings report tomorrow and the fact that 18% of the float is already short.

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  6. Chuck

    I sold my DUG position @ 38 . We have another storm in the Atlantic heading this way, while weak. The Gulf waters are very warm. We have been above 95deg for more then a month.

    http://www.nhc.noaa.gov/gtwo_atl.shtml

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  7. bpoe

    If OIL keeps going down the next trade will be a consumer related ETF!!!

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  8. CubsRock

    Thanks Fly, but I have my hands all bloody from trying to catch these knives called CHK and UNG… They are Tiny positions, but 7% moves, damn.

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  9. Aris

    i’d just like to say that iBC scooped CNBC, as i’d mentioned 10min ago the news that CNBC just reported.

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  10. j

    i bought some airline stocks on the back of oil. If you wanna bet oil heads lower that’s the best way to do so as those stocks have been fucked over.

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  11. Chuck

    http://www.nodc.noaa.gov/dsdt/cwtg/wgof.html

    Gulf Coast water temp tables.

    BTW buying airlines are dog tricks.

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  12. j

    not for a coupla day it’s not.

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