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
23,443 Blog Posts

Gold is For Idiots

See how stupid gold is? Gold is the champion of losers. Just when it looks like that fucker is about to shoot for the stars, it collapses and vomits on your shoes.

As for oil: this is getting ridiculous. Looking at the equity valuations in the energy sector, you’d think oil is $80 per barrel. It is absolute lunacy buying oil stocks up here. It’s almost as if people think there will be no ramifications, no price to pay, now that oil is down 65% in 5 short months.

Please.

As for the general market:

It’s in the midst of a standard, consolidation like pullback. All of my longs are behaving rather lukewarm, with exception to C; she’s kicking ass. At the present, my favorite long ideas are PFE, C, TBT, ITW and VCLK.

My shorts are just sitting, in their respective idiot boxes, waiting to get beheaded. I just know it. KIM, VNO, XOM and a variety of brainless inverse etf’s are not performing. The only etf that looks as if it wants to deball a few bulls is SRS. Indeed.

I should be shorting gold stocks here, particularly LIHR, SA and AU. Maybe I’ll get around to it sometime today.

For the most part, ag stocks should be shot and buried, yet they’re bouncing too. The textbook says to buy SMN here, now that gold, which is a strong component in the etf, is breaking down. Much to my chagrin, I am long SMN and not loving it—thus far.

When 2009 is over, mark my words, there will be ample amounts of pain to spread and share amongst those who sucked the pants off of Gov’t and bought stocks. With my money, I’d rather throw it into large vats of acid, than go all in on the long side.

If you enjoy the content at iBankCoin, please follow us on Twitter

61 comments

  1. Bravo

    Fly,

    What are your thought on XOM puts?
    Particularly the 80’s, whether Jan. or Feb?
    Thanks.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  2. Mushroomz

    Long GD Short LMT is a good swap.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  3. The Fly

    No options for me.

    I am short XOM.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  4. ZenProfit

    Mr. Fly:

    Is there an update on The PPT rollout?

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  5. The Fly

    GS, MS very strong=late day rally.

    Be careful with shorts, except gold.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  6. mbbjnb

    Any thoughts on the new MVIS SHOW-WX website and product?

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  7. The Fly

    PPT is just about done. We are putting finishing touches.

    Here is PPT top 10, with no market cap screen:

    1 NPK 4.20 5.10 4.58 -0.65% 21.49%
    2 AIRV 4.20 4.95 4.52 6.10% 11.88%
    3 LPHI 4.60 4.24 4.45 -0.67% 17.11%
    4 OCN 4.25 4.40 4.32 -0.46% 7.46%
    5 BKR 4.10 4.55 4.29 2.88% 30.79%
    6 EZPW 3.90 4.75 4.26 -0.70% 34.38%
    7 TSYS 4.30 4.10 4.21 6.58% 30.34%
    8 EMS 4.20 4.20 4.20 6.60% 22.45%
    9 SUR 3.60 5.00 4.19 6.62% 27.36%
    10 CPSI 3.95 4.50 4.18 -0.71% 12.97%

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  8. The Fly

    MVIS product will be good. But CES is not what it used to be. And, don’t forget, they might need to raise money soon.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  9. Bob Brill

    Thx for your candid summary of the flux and leaning, including the review of tickers.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  10. arch

    gold is for idiots….

    hmmmm…

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  11. The Chart Addict

    Jim Goldman is a fruitpie

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  12. The Fly

    Breakdown in southwest banks, led by CFR

    PPT has them all at a sell:

    1 FFIN 2.45 3.67 2.96 -9.76% 0.00%
    2 BOKF 2.50 3.51 2.92 -1.02% 37.74%
    3 FFNW 2.85 2.63 2.75 -1.08% 41.75%
    4 CBSH 2.05 3.66 2.73 -10.49% -16.00%
    5 UMBF 2.00 3.67 2.70 -10.60% 3.85%
    6 TONE 2.55 2.78 2.65 -1.12% 65.63%
    7 FSNM 2.55 2.60 2.57 -1.15% 66.88%
    8 COBZ 1.90 3.37 2.52 -6.67% 37.70%
    9 CFR 1.50 3.82 2.47 -19.81% -13.33%
    10 IBOC 1.05 4.16 2.36 -16.31% 7.76%
    11 SBIB 1.35 3.39 2.20 -17.60% 18.92%
    12 TCBI 1.45 3.20 2.18 -7.63% 17.84%
    13 PRSP 1.05 3.59 2.12 -17.83% -19.70%
    14 GFG 1.40 2.80 1.99 -8.29% 16.37%

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  13. mrkcbill

    Don’t worry folks just a “Hormone Imbalance”

    Gotta be CEO speak euphemism for “My Shit ain’t right”

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  14. Jakegint

    That vampiric LPHI seems to be topping the charts for weeks now.

    Surely it rests nestled in the busom of Olde Nick?

    ________

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  15. mdawsz

    Fly, perhaps you’re incorrectly making the assumption that $147 oil was fully priced in at the top? If it wasn’t, then valuations may not be quite as absurd as you think.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  16. Fade Fly

    Fly has no understanding of a fiat based money system. Without gold there is no base. Learn some history kid.

    and keep shorting oil. LMAO. ERX at 48

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  17. Jakegint

    Not for nothin’ but,

    If Ed HOC-kule steroids out over $20.48 here, on volume, he will in short order call unsportmanlike holding on San Diego all the way to $26.75.

    He will then frogmarch off an additional 15 yards against the Chargers for “unnecessary hugging in the end zone” to the tune of $35.00 (and his downtrend line).

    That’s a near 75% move. Not bad for a muscle bound zebra, no?

    _________

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  18. mrkcbill

    ^^
    Hilarious keep em comin

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  19. Fade Fly

    Oil stock valuations????

    COP is trading at 5x’s 09 earnings.

    shorting oil is about as fresh of idea as an episode of Charles in Charge.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  20. Leonard The Monkey

    FTK looks like it’s life is being renewed.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  21. The Fly

    I will.

    Back to oil:

    Rig makers have make or break contracts pinned to $60 crude. Most of you idiots misconstrue short term strength with strong fundamentals. Then, when your face gets ripped off, you wonder why.

    There will be many, many bankruptcies in the oil/gas space, unless oil can climb rapidly.

    By the way, on the subject of “fiat currency”–all currencies are “fiat” since none are backed by anything.

    Last I checked, the dollar was still supreme.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  22. The Fly

    5x what?

    Do you know what they will earn? Are you that stupid to believe 5X is real?

    I bet your type believed the homebuilder PE’s after the implosion in housing.

    Fuck off.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  23. Fly's Triple ETF Dealer

    Heh-heh.

    Heh-heh.

    He right, Fly. Well, al-mose.

    ERX steel undah Foaty-ate, but not by much, too-day.

    And she smokes gooooood, dawg.

    ____________

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  24. Keyser Soze

    The PPT likes financials. EZPW is a pawn shop/payday loan lender. LPHI lets you sell your life insurance policy for cash. CBSH and UMBF are both Kansas City based banking companies controlled by the Kemper family banking dynasty.

    All financials, but an odd mix.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  25. arch

    gold can be @ $35.00 hows that for a base ?? gotta go check on my jobs …

    just like to add the gold miners are heavily hedged with gold to help themselves out of bad times ..not sure what that means to stock values ..since im an idiot ,and i dont care ..

    oh yeah, 1 phone call and times have become good again

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  26. The Fly

    Interesting: MVIS above $2.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  27. The Fly

    I will sell short NOV, when it hits $30.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  28. Fade Fly

    ok – Cut their earnings in half. COP made 2.50/share for the 4th quarter alone in horrid oil/gas pricing environment. shit, that was at an average of 45 oil.

    so very worst case scenario, COP trades at 9 times earnings here with a 4% yield. really outrageous valuations there.

    Seriously – you and your PPT tinker toy need to be retooled. This market will end the year higher because it wants to go higher and managers will outspend you shorts.

    Keep pissing in the wind.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  29. The Fly

    Oil stocks are way ahead of themselves. There will be a sharp reversal soon. XOM is tired, old and hangin’ out with gay idiots.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  30. FLY WHERE CAN I BUY THE IBANKCOIN TSHIRTS?

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  31. The Fly

    PPT has been bullish on oil stocks, so you know.

    You can’t take eps and just cut it in half, moron. How would that worked out for you in the homies, circa 2006, homie?

    Right.

    No, you need to do more slicing. Actually, you need to account for the lunatic contracts that were locked in when crude was north of $100. You also need to understand that eps will be negative for many,many names.

    You are too young/stupid to understand how fucked the sector is. You probably never even experienced a downturn.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  32. The Fly

    Oh, by the way, C, WM, LEH, BSC, MER and others had really cool EPS’s a year and a half ago. How’d the slice it in half strat work then?

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  33. The Fly

    PPT top 10 industries:

    No. Industry Tech. Fund. Hybrid Hybrid Change – Daily Hybrid Change – Weekly
    1 Major Integrated Oil & Gas 2.44 4.79 3.44 -7.07% 4.10%
    2 Water Utilities 3.09 3.79 3.38 -1.85% 34.00%
    3 Beverages – Brewers 2.54 4.44 3.34 -0.68% 27.95%
    4 Shipping 2.51 4.31 3.30 0.09% 31.82%
    5 Industrial Equipment & Components 2.45 4.47 3.30 -2.69% 21.76%
    6 Machine Tools & Accessories 2.43 4.48 3.29 0.18% 33.05%
    7 Entertainment – Diversified 2.54 4.30 3.28 -1.64% 26.60%
    8 Technical Services 2.62 4.16 3.27 -0.77% 25.09%
    9 Oil & Gas Equipment & Services 2.43 4.40 3.26 -5.88% 7.26%
    10 Consumer Services 2.75 3.94 3.25 3.70% 14.26%

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  34. Stuart06230

    Gold is in a bear market. Simple. Lower highs lower lows. In a delflation, everything goes lower.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  35. Maybe Steve Jobs will show at the CES – his cough is improving. Fade Fly is the offspring of “Fly Jr”.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  36. Fade Fly

    pray tell how COP made 2.50/share in the 4th quarter as oil/natty gas prices collapsed???? you can’t. $38 oil is about as sustainable as 140 was. Keep shorting it.

    I told you to buy erx at 27 and you were shorting it – how’d that work out for ya?

    The entire system is going to reinflated in the second half. Inflation in 2 years is much better than deflation now. Keep shorting. Guess you buy last years winner huh?

    as for Home Builders? please.

    I’ll take my chances with COP balance sheet and business model over MVIS, HANS and any other bullshit stock you’ve been touting, kid.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  37. The Fly

    Call me kid again and I will punch your cyber mustache off.

    Go ahead, do it.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  38. The Fly

    Since you mentioned it: HANS has outperformed your bullshit COP, as of late.

    Commodity drops have a lingering effect. Don’t expect it to rape the balance sheet right away. God willing, you will keep believing that Larry Kudlow shit that you are espousing and effectively wipe your pathetic 4 fig account out!

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  39. mrkcbill

    Can we get back to politics please.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  40. charlie

    Sold my GMO for some TNA, to go with my oil and solar plays.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  41. ZMoose12

    Fly:

    What do you think… Take profits on Oil Wednesday BEFORE or AFTER the Crude Inventories?

    ZM

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  42. THE TODD

    While oil may be strong right now, those oil companies are still fucked. A lot of them took out loans based on the expected income that high priced oil will bring them. They may be able to hold off for a bit, but when it comes time to refinance…

    As for gold, I can see why a short here would make sense, but only in the short term. As long as there’s no consumer spending and banks making loans, the supply of money is actually low despite the government dumping as much as they can into it. Velocity baby. Velocity.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  43. ShortBus

    Shorting SA would not make sense, they have no debts and plenty of cash. All they do is drill new holes making their proven reserves even bigger. SA is nothing like the other two. They can continue to operate for a lot longer without raising equity or incurring any large losses. They have a very large gold and copper deposit.

    Not the best gold stock to short.

    AU and LIHR though, go right ahead.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  44. WTF

    volume was light last week on the uptrend and it is noticable heavier today and the market is down. Was DD right about day 55? or 58? or 60? whatever it is…
    Or we gonna go up at the end of the day? Any ideas?

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  45. TX Slave Trader

    Sir Fly,

    I got this via the folks at US Global Investors regarding gold price behavior (dated Dec. 30):

    The price of gold jumped up Monday to a high near $900 an ounce after Israel continued its air strikes on Hamas targets in the Gaza Strip. The thinking is that gold represents a safe haven as tensions rise in the Middle East. Using the same logic, the oil price also rose Monday.

    In a research note on Monday, Bob Hoye looks back at gold and military conflicts. His conclusion is that there’s a price spike as new buyers come into the market, but it tends to be short-lived and followed by a gradual price decline until the conflict’s resolution is seen. At that point, he says, these conflict buyers sell, leading to a sharper price drop until oversold conditions are created, and then the market starts up again.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  46. Sir Douchebag

    You know oil is going to trade up and down $30/barrel. No fundamentals.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  47. mdawsz

    Apple is acting like a real cock-smoker at the $95 level.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  48. CAP

    BEHOLD the comeback in SLV. Bow down to the Silver God.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  49. JakeGint

    Time to buy TSO again.

    And keep an eye on WNR. If it can hondle its way over $8.40 here, its a purchase as well.

    _________

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  50. Fade Fly

    LMAO at HANS.

    Let me guess, you play CNBC’s kindergarden stock picking show. Hope you win this week’s decoder ring for first prize.

    COP’s balance sheet is perhaps only second to XOM’s.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  51. 4fl3x

    Master Fly, How about taking half of TBT off the table?

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  52. Stuart06230

    SLV : bear market.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  53. Fade Fly

    Fly is busy chasing his tail right now.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  54. Jakegint

    At $92.88, SPY is hitting its uptrend line (started at the lows of 12/29 (85.62) and running through the candlebottom lows of 12/30 (87.80), 1/02 (89.92) and this morning (91.96)).

    Holding.

    ____________

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  55. Jakegint

    You ask me why I’m scratching my head?

    Both CBL and the SRS I bought to hedge it are up today.

    SRS makes sense with TBT rising, btw.

    _________

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  56. SatanicChihuahua
    SatanicChihuahua

    Byron Wien is bullish, predicting a 33% rise in S&P for the year. Also says oil is heading to $80 and gold to $1200.

    Story on Bloomberg.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  57. Stuart06230

    Predicting is for suckers.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  58. BeWater

    This is a serious question. How is a mere mortal like me to interpret the PPT results when, for example, currently majors are the top ranked industry but fly is shorting XOM and hates COP, etc.

    I realize the majors ranking is down today, but still up for the week.

    Or am i missing something?

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  59. The Fly

    The PPT is a program, which ranks stocks according to certain parameters. In other words, it has a life of its own.

    Thus far, it has be right on oil, while I have been wrong.

    It happens.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  60. BeWater

    Naturally, i’m sure you won’t agree with what an algorithm gives you all of the time. I suppose it just means there is a factor influencing your decisions that is difficult/impossible to integrate into the PPT.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  61. arch

    can somebody show me how to lose ?? i dont know how

    • 0
    • 0
    • 0 Deem this to be "Fake News"