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
23,433 Blog Posts

Enter the Wheel to Nowhere

I’m out of here; this shit is for the birds. Apparently, the market is stuck on stupid, frozen, unable to ball up and make a move. However, that shouldn’t stop the stock Gods from punching my teeth in with a little “reverse SRS love action.”

The late day SRS fuckery is so classic, they should rename the etf ‘Frank Sinatra,’ ticker FRANK.

Here is a recap of today’s events:

X told us they blow and will begin the long process of bleeding out losses, for the foreseeable future. In addition, they have a $2 billion pension shortfall.

On that news, the stock ripped higher.

The Obama stimulus package has, in fact, no stimulus, touting less than 5% in real infrastructure spending. Instead, we will waste some fake money on condoms and abortion clinics.

Good times.

And, the big news being swept under the rug is: Congress wants to restrict steel contracts to U.S. firms only—with regards to the stimulus spending. Do these fuckers ever pick up history books; and more importantly, are they familiar with Smoot Hawley?

It’s almost as if they (Congress) try to be extra stupid on purpose.

This is not the time to take a protectionist stance with our trading partners. You can’t build an economy, based upon global growth and all if its trimmings, then all of a sudden, when the shit hits the fan, rescind or radically change how we conduct business with other nations.

Asshats.

In short, I like t-bills here, via TLT. And, I like short oil and short commercial Re. However, I cannot short the banks down here, no matter how much I hate them. Look, BAC, USB, WFC and C could double from here and no one would complain about valuations. It’s all a black box. No one knows what the banks are worth. Therefore, absent any really bad news, men in green leotards may choose to jack those fuckers up, in order to be all stupid and shit.

At the close of trading, my top longs were CHL, FXI and TS. And, my top shorts are DUG, SRS, EEV and ERY.

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55 comments

  1. 4fl3x

    Master Fly, forgot to thank you the other day for getting me out of TBT.

    I think $29.50 on the QQQQ’s is the line in the sand. Will need cut shorts if we break over that.

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  2. Topper Harley

    Moody’s may cut GE’s AAA rating on unsecured debt

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  3. crude_oil

    Pick up some USO.I know deep down u really wanna.

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  4. Tony

    T BIlls is SHY, TLT is 20 yr treasury

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  5. Donny

    As it becomes clear that the banks are not going to be nationalized, they will continue to defy logic, and go up … melt up in fact.

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  6. The Fly

    If I was to go long oil, I’d buy UCO.

    If oil gets to $35 again, I will buy it.

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  7. The Fly

    I know the difference between bills, notes and bonds, with respect to duration. I just call them all bills. You know what I mean.

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  8. JimBob

    SRS has been funky as a crack whore of late… no manners whatsoever and with the rhythm of Stephen Hawking…
    will kiss $60.35 bye-bye on the morrow and take a run at $72.25… mawk mah wourds, cracker!

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  9. blow up

    This tape is for hand puppets and traders that shoot darts at stocks and think they are smart. To put on a trade at this point [end of day] is for special ED traders.

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  10. Hans Gruber

    That was another great post, Fly.

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  11. The Fly

    Indeed.

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  12. SatanicChihuahua

    It’s not just Congress who goes out of their way to be super, extra stupid.

    The Tax Cheat in Chief at Treasury must have taken a double dose of stupid pills when he publicly scolded our banker about being a currency manipulator.

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  13. Dino Cicarelli

    …wouldn’t legalizing weed and prostitutes help the economy a little?

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  14. DPeezy

    Holy crap, Dino Ciccarelli. How is life after hockey??? Your Lightning & Stars both suck balls, by the way.

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  15. Braveflaps

    Dino, depends on valuation.

    For example, hookers in LA that used to charge $400 are now $150.

    Deflation is everywhere.

    Oh-

    Yeah.

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  16. Donny

    Per CNBC:

    The Obama Administration is planing on announcing a deal soon to buy the toxic assets from the banks. They are prepared to pay better than currant market price (premium). They are going to capitalize the banks further, while at the same time, put this shit to rest.

    So much for nationalization.

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  17. Anton Cigur

    Dino –

    As Marc Farber pointed out just recently, at this point in the downturn it is very important to take supply OUT of the market.

    So, no.

    But economic conditions will undoubtedly lead to an increase in supply of both commodities.

    Ironic, no?

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  18. TX Slave Trader

    The real reason Fly buys CHL, FXI:

    http://www.usfunds.com/franktalk/

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  19. looters

    Hey Fly,when you say DUG,EEV,etc are your top shorts,are you saying you’ve sold those short,or you’re long diETF’s?

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  20. Fly,
    Any comments on this?

    http://www.cnbc.com/id/28879872/site/14081545

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  21. Nancy SuckMyPelotas
    Nancy SuckMyPelotas

    Even I enjoyed your post!

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  22. jig

    speaking of SRS, its getting fucked right now in AH. FAS is roaring higher.

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  23. The TODD

    Today was the biggest waste of time. I want my day back. I almost watched three full movies today.

    Revolutionary Road – sucked
    Afro Samurai – okay
    Vicky Cristina Barcelona – Scarlett Johanson and Penelope Cruz are hot

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  24. mdawsz

    Whoa! Are you seeing this ah movement?

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  25. hmmmmmm

    FLY- To add to your comments about US iron and steel in said bill, here’s the info straight from it. I’ll look over some more of this massive fucker later. I wonder why they didn’t include aluminum, especially with AA as a major DJIA component.

    SEC. 1110. USE OF AMERICAN IRON AND STEEL.

    (a) In General- None of the funds appropriated or otherwise made available by this Act may be used for a project for the construction, alteration, maintenance, or repair of a public building or public work unless all of the iron and steel used in the project is produced in the United States.

    (b) Exceptions- Subsection (a) shall not apply in any case in which the head of the Federal department or agency involved finds that–

    (1) applying subsection (a) would be inconsistent with the public interest;

    (2) iron and steel are not produced in the United States in sufficient and reasonably available quantities and of a satisfactory quality; or

    (3) inclusion of iron and steel produced in the United States will increase the cost of the overall project by more than 25 percent.

    (c) Written Justification for Waiver- If the head of a Federal department or agency determines that it is necessary to waive the application of subsection (a) based on a finding under subsection (b), the head of the department or agency shall publish in the Federal Register a detailed written justification as to why the provision is being waived.

    (d) Definitions- In this section, the terms `public building’ and `public work’ have the meanings given such terms in section 1 of the Buy American Act (41 U.S.C. 10c) and include airports, bridges, canals, dams, dikes, pipelines, railroads, multiline mass transit systems, roads, tunnels, harbors, and piers.

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  26. Time Patrol

    The Time Patrol is breaking the time loop in this alternate.

    Creating off-the-charts rallies while the market is closed is just another clever, infuriating use of time-travel.

    It will be true in every viable alternate reality, that the Time Patrol must always win.

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  27. Thunderpup

    Well, AH, they did jack the banks up… now they going to create a dumping ground for all the bad assets from the banks and pay with our dear tax payer $$$… gee… WTF… feels good to live in the land of FREE… ya, FREE lunch for those MotherF***ers CEO…

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  28. TraderCaddy

    What kind of interest will the Fed take in the banks and will this dilute common equity holders or wipe them out?
    Anybody know?

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  29. Gwar

    Treasury Direct Accounts for Everyone!

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  30. Aris

    i’m ready to buy some more bank garbage. fuck it. this market has no rationality, so a bank run for a month sounds good to me.

    WFC to $35!

    LOL

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  31. TraderCaddy

    I believe WFC reports earnings tomorrow.
    Careful (or not).

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  32. 4fl3x

    So tempting to grab some SKF, $140 was where my line was too 🙁

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  33. Nationalize what?
    Nationalize what?

    It is refreshing that some still wonder if nationalization is going to happen or not… the sentiment in banks has changed over the past few days as the fears of nationalizations receded… when average joe investor finally realizes that the common will most likely be safe, C will double from here…

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  34. Zack Karabell

    My Idol

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  35. Braveflaps

    Southern banks will offer their young as collateral for new tarp funds.
    Southern banks will offer
    offer

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  36. jig

    love how CNBC is the only one who is reporting this bank news…they should go fuck themselves…on another note..i fucking sold my FAS position b4 the close…

    FUCK

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  37. punyandy

    Is Cramer really about to be bullish on US Steel? That fucker was saying sell it nine ways to Sunday at the bottom. What a fucking clown.

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  38. The Chart Addict

    Sometimes I wonder if I should bring AH buyers of banks to a mental institution for evaluation.

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  39. DEVILDOG

    New count analysis. Market will melt up thru the 30th to around S&P 870 – 875. S&P 800 will be broken next week. Had to adjust for the “good bank…bad bank” fix it all, all is well hope bullshit. Odd no?

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  40. lol

    CA: lol you probably should, but if you did, there would be alot of company… long C from 3.45

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  41. punyandy

    Devildog – You have yet to be correct about any prediction. Were you aware in advance that the Dupont quarter would be crappy, considering you went to college with the founder?

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  42. DEVILDOG

    puny, go fuck your bullish self. WRITE my above prediction DOWN. I’ll be shoving it in your stupid sheeple face next week. You’ve been warned.

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  43. Ass Napkin Mike

    Booo–Yahhhhhh

    Jim Cramer Blog
    Be Careful With the ‘Bad Bank’ Plan
    By Jim Cramer
    RealMoney Columnist
    1/27/2009 6:10 PM EST
    URL: http://www.thestreet.com/p/rmoney/jimcramerblog/10460320.html

    Be careful. Wishing for a First National Bad Bank, something I have written and called for in these pages endlessly, would certainly be terrific for the bank stocks, particularly Wells Fargo (WFC) , Bank of America (BAC) and JPMorgan Chase (JPM) . It is something I thought we were going to do earlier, something I thought TARP would be molded into, but the uncreative Treasury department and Fed didn’t get their act together to do it.

    But why be careful? Because after they have all ramped on this, remember that there could be a cost to the Bad Bank. If Obama is smart, he will extract something big for staying in the game, maybe huge warrant deals, lots of dilution. I suggest there will be big short-covering and big selling of the ProShares UltraShort Financials (SKF) , etc. I sure hope so — I own JPMorgan and Wells Fargo for Action Alerts PLUS, and I have been clobbered by them.

    I just want everyone to understand that while Obama has got the solution we have been calling for, until we know the price of depositing bad loans to the First National Bad Bank, we have to be cautious on bidding all of these stocks up too high.

    Random musings: I continue to be riveted by all things Buffett, as Doug Kass has got me going on this,. Now lots of second guessing on his American Express (AXP) position. Buffett could certainly use a rosy-scenario bad bank for Wells Fargo, American Express and U.S.Bancorp (USB) .

    At the time of publication, Cramer was long JPMorgan Chase and Wells Fargo.

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  44. Spaulding

    Fly,

    I sincerely hope you get your mojo back….soon.

    Spaulding

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  45. The Chart Addict

    Looks like I’m going to the crazy house myself.

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  46. Donny

    If Wells Fargo even comes close to reporting a good number tomorrow morning, the shorts will be swiftly deBalled at the opening, and likely throughout the session as more of them buy back their shares. In fact, it could get very, very, ugly. Especially for those shorting the fucked up banking industry.

    Sleep Nice CAP.

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  47. Shemp

    DEVILDOG,

    I heard you have been away having surgery. I understand they were trying to disconnect your optic nerve from your asshole, thus correcting your consistent shitty outlook on all things. I hope it went well.

    Shemp

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  48. The Fly

    I have my mojo motherfucker.

    Bad bank plan will fail, in a most egregious way.

    Don’t short into it right away. Let it marinate a few days.

    Tomorrow I will flip the switch and get long some more Chinese shit.

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  49. chivasontherocks

    this is not to be meant as advise only info. chinese are superstitious people. year of the ox is suppose to be bad for market. may play a role when they open after their holiday.

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  50. The Fly

    Chivas:

    Just change your moniker to “Anti-Fly” and call it a day.

    CHK going down the rabbit hole:

    http://www.reuters.com/article/marketsNews/idINN2748076320090127?rpc=44

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  51. chivasontherocks

    I am very sorry you took it that way. i hope you would do same for me. i read this blog mostly because of you. i only seek to give back what i take. like you told me once before, you did not take the above in the spirit it was given. good bye.

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  52. Alvari40

    Don Luskin makes me puke.

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  53. arnold

    fly… newbie here. just wanted to say thanks for the info you post and the time you put in. arnold

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  54. punyandy

    Devildog – Whether I am bullish or bearish is of no significance. I can always change my mind. You, however, will always be a lying, fucking clown.

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