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
23,423 Blog Posts

The Summer Rally is Coming to an End

This is your final warning. Dollar strength has rejiggered asset allocation models, throughout the globe, causing U.S. equities to spike. However, keep in mind, these same ham and eggers were long “BRIC” in size, just prior to its swift execution.

This is a light volume summer rally. Like previous summer rallies, in the midst of a bear market, it will fail (miserably), causing upright walking pigs, in tight neck ties, to wish they took up a different field of business.

With my money, I bought some more [[SKF]] at the bell. At the present, I have a decent blend of long/shorts. However, I am prepared to sell most of my longs, in order to benefit from the inevitable leg down, whenever it commences.

I am not really a big geopolitical fan. I think people who waste their time with politics and “world news” are mentally ill and may pose a risk to small pets. However, it’s worth noting, the insanity of investors, totally ignoring Russia and their stupid tanks, is impressive and appalling at the same time. On the bright side, the military-industrial complex is benefiting— in a big way.

Top picks: General Dynamics Corporation [[GD]] , Lockheed Martin Corporation [[LMT]] , AeroVironment, Inc. [[AVAV]]

UPDATE: Barry touches on a point I have been making for months: municipalities are in trouble.

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28 comments

  1. Gunners

    Have a good weekend

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  2. anjing bau

    the Mike Phelps aka summer rally….ended today. I expect you will be swearing a blue streak before I can even say waiter there’s that Friggin FLY in my soup again

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  3. Wyatt

    If you like small-cap defense tech, check out AXYS rather than AVAV. Better growth prospects and less-widely covered. Valuation is slightly richer P/E-wise, but they’re worth it.

    Also, short CAE-T (NYSE: CGT). Stock is undercovered in the US and is poised to miss both top and bottom line badly next quarter as its revenue mix shifts away from its higher margin commercial air segment toward its lower margin, but less-volatile military segment.

    As disclosure, I am short CAE-T.

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  4. Employee8

    Fly … would you still short VMC here at current levels?

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  5. The Fly

    i spit on vmc.

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  6. Employee8

    Wyatt …. or ADG for a micro cap in a partnership with ATK and supplying ammo to a former Russian state.

    Disclosure: I own none yet … waiting on a pullback

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  7. canuck visionary
    canuck visionary

    My money is following your flight patterns senor Fly. I will feed off your wisdom like a nightmare leach. Just like Canada has always done with U.S. of Gay.

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  8. Employee8

    So I can short it here AH with confidence …

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  9. InternationalGroupie

    With this, i won’t know what to do next week:
    The same old demand destruction= short commodities, aud dollar, gbp dollar
    or something new like a bounce in oil prices, and going nowhere for a while.

    Usually options week rarely have “moves” that stick like the moves from MBI and ABK, however, we’ll see if mortgage securities have really turned soon.

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  10. Hammer

    How about DGP? Gold has to rally when the market fades, no?

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  11. Employee8

    Never mind … my lame ass internet broker says there are no shares left to borrow on VMC. Thanks anyway Fly.

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  12. AAhhhh

    Shorting VMC Monday morning should not be a problem. Pull a one year chart and draw a straight resistance line with your purple crayon….whether you trade technicals or not, this
    area should provide nice resistance around 80 and change as many goober traders will bail based solely on that “magic” line…whatever color crayon you choose.

    I’m just saying….

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  13. Q4

    Bounce That

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  14. JakeGint

    Canuck-i-stain:

    Learn to spell, degenerate Leech.

    ________________

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  15. JakeGint

    US Olympic team “schools” hapless Canuckistains.

    Oh, the humanity!

    __

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  16. canuck visionary
    canuck visionary

    Jake. We in Canada speak the queen’s english, not your yankee gibberish. Canada invented basketball but we neglected to import slaves who would become the stars of the future.

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  17. Axeman

    Canucklehead – ya’ll do only marginally better with english than you do with french.

    Stick to stocks, dude – you’re not gonna score any points with that “country” of yours.

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  18. JakeGint

    You’ve had a lot of fuckups as a nation, Icestain.

    Not the latest being that your freaking CAF planes are non-NATO compliant.

    Or your bizarre Anti-Free Speech “Human Rights” Courts of Star Chamber.

    That’s all right though, we’ll continue to protect you as you slide into socialist disrepair, and finally bankruptcy.

    Then we’ll annex your asses for ten cents on the dollar. 😉

    _______

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  19. nullpointer

    fly-

    curious about the rules-

    does it have to close under 11, or just penetrate in intraday?

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  20. chuck

    Mike Phelps holy smokes if I hear or see that guy one more time I will I will, puke all over Canada..

    http://en.wikipedia.org/wiki/Slavery_in_Canada

    Slavery was alive and well in “New France”

    “The first recorded slave purchase occurred in 1628 in New France, in the province known today as Quebec. The purchase was of a young boy from Madagascar, who was given the name Olivier Le Jeune.”

    Eeven little boy’s.

    Fly nice link. “The Big picture” thanks.

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  21. TraderCaddy

    I did like Tim Hortons when I was in Canada for a golf tournament. I remember seeing a couple of hospitals in the area and they had signs out front saying the emergency rooms were closed. A local told me it was because of a physician shortage and many head to the USA after med school. Socialized medicine fails again.
    I though it was pretty cool the way they had an indoor curling rink “below” the main floor of the clubhouse. Gotta do something in the winter.

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  22. Is the VIX a coincident or leading indicator of the coming conflagration in the market?

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  23. Woodshedder

    Phelps wins his 7th gold, by 1/100th second.

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  24. Vince Lombardi

    Is there a way to play the municipalities trend?

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  25. The Fly

    Yeah, short VMC.

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  26. InternationalGroupie

    VMC is an excellent short. Come monday ill buy some 70 puts for Sept.

    Also looking into GFF and its 20 mln share offering at 8.50. This stock is at $12 now from under $10 in a week (yeah options week- this won’t stick)

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  27. DaftGit for Ambassador to Canada
    DaftGit for Ambassador to Canada

    His well-reasoned and courteous response to the idiocy of Visionary Canuck suggests he would fit in well with Condi and company. See a nail? Hammer it down!

    The rest of us in Canada appreciate the subtle understanding of our political and economic situation.

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