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
23,428 Blog Posts

Cheap Oil Means Low IQ Guys Buy Stocks

Don’t speak of Vulcan Materials Company [[VMC]] . Don’t even do it.

On the backs of $112 oil, Wall Street is celebrating, via having a Liberace ‘gay fest’ with stocks. It’s not of great importance whether banks have money or not. All that matters is if Joey Bag o Sixpacks has enough bread to buy a bag of doritos at his local gas station. See, with gasoline diving to the bargain level of $3.99, now, he can afford to splurge.

Nonetheless, I am quite willing, and able, to gamble on today’s rally getting cut into ribbons, by sharp clawed bears out for revenge.

If not, I will enjoy the melt-ups in Chipotle Mexican Grill, Inc. [[CMG]] , Barnes & Noble, Inc. [[BKS]] , KB Home [[KBH]] , The Clorox Company [[CLX]] , NutriSystem Inc. [[NTRI]] , while lamenting TCF Financial Corporation [[TCB]] , Clean Energy Fuels Corp. [[CLNE]] and National-Oilwell Varco, Inc. [[NOV]] .

Gold is entirely gay.

But, my [[FXP]] is sprinting higher. Take it from me, both China Life Insurance Company Ltd. (ADR) [[LFC]] and China Mobile Ltd. (ADR) [[CHL]] are run by imbeciles with crap in their top drawer.

With my money, I may sell a little more FXP, in order to finance one more round of egregious [[SKF]] buying. And, I will sell out all of my Hansen Natural Corporation [[HANS]] ; this time I mean it.

Lastly, I will buy some ‘war stocks.’ I am into that sort of thing now. I will buy a basket, that includes: General Dynamics Corporation [[GD]] , Northrop Grumman Corporation [[NOC]] , AeroVironment, Inc. [[AVAV]] , American Science & Engineering, Inc. [[ASEI]] , Alliant Techsystems Inc. [[ATK]] , L-3 Communications Holdings, Inc. [[LLL]] and Textron Inc. [[TXT]] .

NOTE: At the present, I am long GD, Lockheed Martin Corporation [[LMT]] and AVAV.

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45 comments

  1. Scum Bucket Bitchez
    Scum Bucket Bitchez

    Now which one of those oil stocks was I supposed to buy??

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  2. DSB

    Soros just bought some LEH. Guess the sky isn’t falling?

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  3. BPOE

    Where the fuck is everybody when the FLY is on a roll!!!!

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  4. boca

    BPOE, I’m busy crying bitter tears into my pile of SLV while I debate what to do, and shipping books to BKS customers, thereby increasing the Fly’s portfolio performance.

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  5. TX Slave Trader

    Lo siento pero….viva La Vulcan!

    disclaimer: I own the Sept 65 puts and just puked in my mouth

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  6. nik

    we are testing the 1300 in es for the 6-times today. There are really a lot of idiots, who belief it’s a bottom. I think next week will be a great week for oil & co.

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  7. Goldie

    PPA ETF top holdings :

    BOEING CO
    GEN DYNAMICS CP
    HONEYWELL INTL INC
    I T T CORPORATION
    L-3 COMM HLDGS INC
    LOCKHEED MARTIN CP
    NORTHROP GRUM HOL CO
    RAYTHEON CO
    TEXTRON INC
    UNITED TECH

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  8. boca

    thanks Goldie I’m going to check out PPA

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  9. kmorph

    Fly, you got a target price to pick up more SKF?

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  10. JakeGint

    Check it out, MSN is stealing the Fly’s shit!

    __

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  11. Gregory

    I am relatively new to this “game”, but I can not help thinking that “the unspeakable company” referred to above was pushed to $80 solely so that the options dudes could unload their options, and then they push it back down to exactly $75 to unload the rest of their options on expiry day.

    Is this really how it works ? Or am I just being paranoid ?

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  12. The Fly

    ITA is a better defense ETF than PPA.

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  13. The Fly

    VMC is being traded by the Italian mafia, it seems.

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  14. boca

    Thanks Fly I will check out ITA, appreciate it.

    Gregory, I don’t think you’re being paranoid.

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  15. Donny

    The shorts are coming in and raping the OIL longs. Fuckers talking about China, and 20,000 cars a day. LoL Please don’t humor me with that silly bullshit! Oil is fucked, mainly because America and my neighbors are insolvent.

    One more point ~ Fuckers that buy stocks (in particular, financials) thinking it is the “bottom” will be losing more money in the future.

    The trade out of commodities, into US stocks is unsustainable.

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  16. Juice

    Bennet Sedacca

    11:35:00 AM

    Position in GDX, GDX options

    Got gold?
    I have heard this refrain many times. Like the ‘Got Milk’ ads.

    My firm didn’t have gold for a long time. It was way too popular and the pain trade was clearly down.

    And the dollar rally? Sorry to beg to differ, but it is a ‘euro selloff’, not a ‘dollar rally’.

    My firm is taking this opportunity to own GDX. Hedged of course.

    The DXY is a bear market rally in my humble opinion.

    Got gold? Yep, I do now.

    Mr Practical

    11:10:00 AM

    No positions in stocks mentioned.

    Minyan Mailbag: Small Caps Outperform?
    Mr. Practical,

    The iShares Russell 2000 ETF (IWM) tends to outperform in a strong U.S. dollar environment. There has been much talk about the dollar seeing its low. Small Cap tends to be smaller U.S. centric companies with less exposure overseas, thus, they perform well in stronger dollar environments. Conversely, the Dow (large cap multinational companies) will outperform in a weakening dollar environment, as they export a higher percentage of their products. There has been much interest in the IWM/S&P relationship lately.

    Thanks,
    Minyan B

    MB,

    This comment is very naive and dangerous. It way oversimplifies the situation. It is what most people believe and it is wrong. In an expanding economy the dollar can be strong. That is when small caps outperform. They are more sensitive to economic expansion than large caps.

    But why do you think the dollar is strong now? It’s not because of crude as some people think. Crude is going down because demand is falling rapidly because the economy is in a recession that is going to get worse.

    When the Fed can inflate the money supply, they create debt. That debt is in dollars. So as the money supply inflates, the dollar goes down. Today the money supply is deflating and the Fed cannot “reflate” it. The repo system is broken, and the TAF is supplying all the capital. So debt is getting destroyed which is what you see when banks write down loans, which, by the way, has much more to come.

    This destruction again makes the dollar dear and will allow it to go up. A lower dollar over the last 6 years has driven stocks up. Now what do you think a strong dollar will do in this case? Stocks will be driven down. Exports will crash as the dollar strengthens and Europe goes into a recession.

    -Mr. Practical

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  17. SatanicChihuahua

    I tried to stimulate discussion of defense stocks 2-3 days ago, and only Jake responded with GD.

    Thanks for the belated mention of two ETFs, after I’ve already bought LMT and RTN.

    You are all fire hydrants to me now.

    Update: Both ETFs trade less than 100K per day. I value liquidity, so I’ll stay with the stocks.

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  18. TraderCaddy

    Nice picture of Fly’s illegal gardeners. Do they plant the impatiens and clean the pool?

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  19. Vlad

    Comrade, VMC is not traded by the Italian mafia.

    Délat’ iz múkhi sloná.

    Look it up.

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  20. Juice

    I don’t want to cut this fun rally short but how are we supposed to get up to everyones fave SPX target of 1330 like this?

    Pretty lame … It may be time to start positioning for that armageddon trade, again. Long Nukes, guns, butter, gold, silver, Short everything else.

    Just thinking out loud.

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  21. Juice

    Jeffrey Cooper

    12:08:41 PM

    No positions in stocks mentioned.

    Trends Trump Perception

    Despite the geopolitics, gold and oil continue lower.

    Moral of the story: never, never ever try to rationalize the irrational…

    People are people and if they were rational there would be no alpha to squeeze out.

    While on the topic, resurgent Russia flexes its muscles–if the news breaks with the cycles will this mark a pullback low in gold and oil?

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  22. Nardsbrau

    Stay out of Polski, Vlad – you’ll be impaled on your own flaccid weiner.

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  23. Dr. Leonard "Bones" McCoyGint
    Dr. Leonard "Bones" McCoyGint

    Damnit Juice, Speak English!

    I’m just a back alley extraterrestrial meat processor, not a New Age Millenarian!

    ______

    (Full disclosure, just doubled my exposure to GLD and SLV. My chart shows long term trend line touches on both.)

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  24. alphadawgg

    SatanicMexicanRatDog—

    Where were you when I posted this?

    http://www.ibankcoin.com/alphablog/index.php/2008/08/11/bought-gd-9309/

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  25. TraderCaddy

    Yeah, Vlad, just like Nardsbrau said. Watch out or we will have the UN send you a real nasty letter.

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  26. SatanicChihuahua

    I missed it. Sorry. I was probably busy with more important matters, like trying to hump someone’s leg.

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  27. Nardsbrau

    Ivan will gag on the acrid smell of UN milk and cookies.

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  28. JakeGint

    You are all fire hydrants to me now.

    Funny, Devil’s dawg. Btw — you see the ads for the new chihuahua movie?

    I’m a sucker for talking pooches, so I think that bit about the explanation to the Bev Hills doggie about why she should speak Espagnol is hilarity:

    Hello? You are a chihauhau, ‘Miga!

    (You had to be there)

    _

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  29. JakeGint

    Get on ISIS here, phags.

    ___

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  30. Molecool

    I TOLD YOU that there is a major short squeeze on VMC. do you see my posts or just conveniently ignored it?

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  31. Molecool

    “Nonetheless, I am quite willing, and able, to gamble on today’s rally getting cut into ribbons, by sharp clawed bears out for revenge.”

    LOL – sharpening them as we speak 🙂

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  32. Danny

    it’s “mi hija” Jake, portmanteaud into “mija.” It means “my daughter” in that filthy language they speak. Duh.

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  33. Employee8

    AD, Is GHM rolling over for a short or what?

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  34. Danny

    NEU is shortable, top of trend, just throwin it out there.

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  35. Employee8

    Danny, u still playing DGLY ? It’s testing the 200 now.

    Good Luck!

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  36. JakeGint

    Thanks for the pidgen lesson, Junky Dan.

    __

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  37. Danny

    yeah I still have a few hundred shares, which, honest to god, I forgot about until you mentioned it. I try to block out the unmitigated failures I haven’t sold, lol. I wanted to hold the small piece of garbage for a few quarters to see if it can pull anything off, but I’m out below 7. Thanks!

    Jake – It’s not pidgen it’s mexican. I’m serial [more slang? Is he nuts?]. They say mija as slang. It’s like calling your wife/bitch/significant other “baby.”

    [note: I’m being told by my producer that the language is Spanish, not Mexican, sorry]

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  38. boca

    Props to Danny for knowing the word mija and what it means! I’m uber pleased.

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  39. Market Fool

    ¿Qué estaba tratando de convertirse en una tormenta tropical es poofing en una mera línea de squall y frumping sobre Cuba en el sur de la Florida.

    LMAO!

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  40. boca

    Frumping sobre Cuba hahaha good one.

    Make mine a cuba libre, it’s Friday, bitch-ez.

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  41. ottnott

    My sister had a dog named Mija. It got eaten by a coyote – one of the four-legged ones.

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  42. El Mariachi

    I have a coyote named Mijo. Sorry for your loss.

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  43. boca

    ottnott, that’s so sad, I’m sorry. When I lived outside San Diego I had to keep my little cat indoors because the coyotes would come down from the hills looking for a meal.

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  44. Dave

    LLL building big super fast ships for marines. blowin up.

    The Fly sees the sky just begin to fall. A full time baller.

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  45. Dave
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