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
23,446 Blog Posts

Done For the Day

Let it be known, I sold out of the rest of my CHL, MT and ACM. With the proceeds, I bought stupid dollars.

Really, I want no part of some bullshit meltdown or short squeeze. The ultimate goal here is NOT to ride the market down to zero, a la DEVILDOG. Instead, I intend to preserve capital, in order to buy good companies on the cheap.

The only problem: valuations are not compelling.

In order to get me “balls to the wall” bullish, I need to see the S&P at 550, or 10x 2009 earnings. I think it’s fair to say 2010 will not be a “bounce year.” So, there is no logical reason to apply a premium to stock valuations.

Despite the Federal Reserve’s printing presses, we are in a deflationary vortex. Stocks like XOM, CVX, COP and RIG can be shorted with impunity.

There is no reason at all to be long commercial Re. Once the retail shit storm hits, the commercial Re space will be obliterated, which in turn will lead to another meltdown in the banks. It’s a vicious cycle that will annihilate those who get sentimental when buying or selling stocks.

All of the big banks will have to be nationalized or magically “go away.” When that happens, the Federal Government will have to either wipe out bond holders or eat 7 trill in bank debt.

Barring a surprise development, I will not execute another trade today, currently 20% long, 25% short, 55% in cash.

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

71 comments

  1. Zombie Nemesis

    Zombie is slow

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

    Amen to Deflationary Vortex!

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  3. Ozark hillbilly

    Too bad the some bondholders that would be wiped out by a bank bond default are to a large degree the same bondholders that buy US Treasury bonds. So it is even more of a Catch-22.

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

    Ozark

    Exactly.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  5. the prof

    “Owners of capital will stimulate the working class to buy more and more of expensive goods, houses and technology, pushing them to take more and more expensive credits, until their debt becomes unbearable. The unpaid debt will lead to bankruptcy of banks, which will have to be nationalised, and the State will have to take the road which will eventually lead to communism. (Das Kapital, 1867)

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

    Bernanke’s tone is too arrogant. I have dispatched a ninja to take care of him and Rothschild

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  7. Henry Fool

    I love that the Fly is at odds.

    Something is about to happen and although it matters not if the Fly is positioned to capture the next move, I am >90% long and flat on the year.

    Fly wins all the time. I get that, but I still hope I’m right.

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

    Believe me when I say there has never been a better moment to short stocks. I doubled up my short positions on that spike. I tripled my short positions in GS and WFC. The market is going to cascade into the close. HObama has failed and his mortgage plan is bullshit.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  9. TraderCaddy

    Yes, Uncle Ben is correct.
    Why just the other day my neighbor and I engaged in a conversation about The Fed’s Balance Sheet.

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

    Henry do you still own SWHC?

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  11. SteveTheNeighbor

    Give me a call Fly.
    You can come over, have a few beers, and discuss the Fed’s Balance Sheet.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  12. Phil_from_Brazil

    Fly,

    The only problem with your thought process is that the SP-500 P/E has been reflecting overstated earnings with the adopted use of operating earnings since the mid 1990s (Prechter makes reference to that in his book, Conquer the Crash: How to Survive and Prosper in a Deflationary Depression).

    If you go to the S&P website and download their excel spreadsheet, they give you the operating and reported earnings data. Applying reported earnings, the SP-500 is trading in the 20 P/E area. We have a lot of room to drop.

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

    Fly cashing out = contrarian signal. tradable bottom likely within the next few trading days.

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

    Excellent quote prof. Marx was right about the direction capitalism will take

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

    Lots of new 52 weeks lows today…..
    AA, COF, ESLR, STI, WYNN, UNG, AXP, ING, just to name a few

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  16. Government bailout machine
    Government bailout machine

    CHOMP! CHOMP!…..CHOMP! CHOMP! CHOMP!

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  17. Thums Up

    Sources within Goldman Sachs (GS) are saying that partners are being forced to borrow millions of dollars to cover margin calls. The borrowing, which is not a “widespread phenomenon,” affects a “few partners,” but sources say the firm is arranging for its own financial advising firm to facilitate borrowing for them. Reference Link

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  18. Its All Rigged Says
    Its All Rigged Says

    Short Short Short
    Churn Churn Churn
    Buy Buy Buy
    Churn Churn Churn

    Give it 2 weeks

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  19. Vijay Singh

    Hey TraderCaddy,

    Any ideas what sponsor logo I can replace on my visor this weekend?

    Narrowing choices these days.

    VS

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  20. Say YES! to socialism
    Say YES! to socialism

    I was just thinking that since we have all embraced the new socialist regime, that we should pay whatever we feel in our heart is right for the PPT service. I think this is why THE FLY is being so coy about the price, he wants THE PEOPLE to decide. Well done Comrade FLY!

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  21. TheArtist

    If you watch CNBC later on today, after the Q/A crap all the journalists and the Fed guys including Bernanke are going to all sit in a circle and play duck duck goose.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  22. wiglebot

    Fly, I am buying now. I can hedge. But if you are the crazy man that is psychologically connected to this Matrix, then buy cheaper.

    I am not buying companies that rely on the poser rich. I have watched entire ski towns remake themselves for the poser rich, and this year they are empty. Posers!

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  23. Blow Up

    Like I said only fools trade this market. The FLY is no fool. You need to wait until we see a Surprise Catilast before trading up or down. I don’t think it will come from the US Government.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  24. Braveflaps

    “since we have all embraced the new socialist regime, we should pay whatever we feel in our heart is right for the PPT service”

    Isn’t it from each according to his ability, to each according to his needs? If so, Fly will be giving the PPT away for free to almost every douchebag on Wall Street, or at least CNBC.

    A fortune cookie to GS and I will extend my death-to-DRYS-financed polar domination of the south to control over my own aurora coriolanus.

    Braveflaps next prey: the savage Narwhal.

    Your tusk is mine, bitch!

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  25. Rodney Dangerfield
    Rodney Dangerfield

    Elevator down please.

    I need to catch a flight to a romanian bucket shop

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  26. anon

    that Marx quote is a fake

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

    Fuck you free loaders.

    PPT is priced between 29-49 per month, depending on duration of sign up.

    Your invoices will arrive shortly.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  28. Comrade Fucktard

    Fly:

    Can you consider a comment posting tax, where funds can be provisioned to help those less fortunate traders pay their PPT subscription fee?

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  29. TraderCaddy

    Yes Vijay.
    How about Fuji Water.
    I can see the commercial now.
    Vijay drinks Fuji.
    Or how about iBankCoin as a sponsor. Put a Fly on your cap and the iBankCoin logo on your bag.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  30. Eye Nu Stuff

    Take the financials out of the S&P 500 and what’s left currently trades at 8.8x PE. Stay away from the financials and buy the rest.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  31. Commissar BM

    Mao Mao Mao Muh Mao Mao Muh Mao

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  32. Ben Bernanke

    I fucking RULE at duck duck goose…watch out bitchez!

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  33. Thunderpup

    Gasparino was good for some coin today. Shorted GS at $84.20.

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

    Fly, Do you have a PPT version for DUMB ASS’S such as myself. I rarely enter on the right side of a trade. If anyone has any sugestions as to where I should learn from. Please let me know.

    Thanks in advance.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  35. Ozark Hillbilly

    Although the sentiment behind the Marx quote is correct, I believe the quote itself has been debunked elsewhere, i.e. someone made this shit up, like a Nostradamus prophecy after 9/11.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  36. newbie

    he fly i have a software (RNG – random number generator) that will work as well as PPT (or any other random number generator) to generate random numbers. Just tell me the range – what is it from 0 to 5? or from -5 to +5?

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

    WTF Chart is back!?!?!?

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  38. Juice

    Govy fuckery hour … courtesy of TARP

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

    Will it be a full blown WtF chart or the LOL chart ?

    developing /…..

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  40. Anton Cigur

    Apologies for linking to a Doug Kass article, and deeper apologies for linking to that herpes simplex 2.0 of financial bloggery, li’l jim cramer, but this “piece” might represent the thinking of those who think differently than our esteemed host.

    Caveat 1) – Fly has kicked Kass’s ass both last year and ytd.

    Caveat 2) – Kass called a bottom in US equities — for the year — on 2/12.

    His bottom line: “To conclude, the lowering of the bar could be closer than many think, but the path to reach it remains icy, so investors should still tread carefully.

    Despite the fear and loathing on the part of investors, I am beginning to find value and, for the first time in several years, I am in a (slightly) net long position.

    Gun to my head, my baseline expectation is that the S&P could end up with a mid- to high-single-digit return for the full year, or about 15% above current levels.

    Many stocks will rise more dramatically.

    Color me a bit more bullish.”

    http://www.thestreet.com/story/10464211/1/kass-fear-and-loathing-on-wall-street.html

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  41. @ Newbie

    Do you really have this random generator?
    I’m actually looking for one, seriously…

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

    Short some more here. *yawn* this is so predictable. Off to drink some rich mans whiskey. Probably end up with under 6 digit gain today.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  43. Henry Fool

    TheArtist:

    I’m very big in SWHC ahead of earning which i believe are 3/5.
    I dont want to be too long into the number but right now large!

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

    to Anonymous: 🙂
    i program in unix and there are standard unix calls to generate random numbers. I am just skeptical about any “proprietary” indicators and laugh when hear that people are ready to pay money for them. $30 bucks for some numbers arriving to your mail box? If indicator fails for a subscriber – will fly refund the fees? Who will refund the losses?

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  45. Woodshedder

    Newbie, who refunds losses from trading accounts? Nobody.

    You are paying for information. You may use it as you see fit.

    I have never heard the PPT described as a “proprietary indicator.”

    I understand your point, but it is the same as criticizing a car that you have never taken for a test drive, or even seen, for that matter.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  46. Anton Cigur

    ^^^
    (Edit) Wood knows the PPT and said it better.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  47. Henry Fool

    true that Cigur I’ve said before It’s the decisions you make not the information your given.

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

    CAP autofellates in a Snuggie.

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

    Look at the PPT this way. Previously you had no one to blame when you ran up those $10000s losses trading stocks. Now when you lose $10000s you can blame it on PPT. Wifey asks ‘how the hell did you lose $30k last week’ You can reply ‘it wasn’t me, it was the PPT’
    See PPT is definitely worth its $25-50 monthly costs. Now you have someone to blame for losing all that money. Hope this helped 🙂

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  50. fire-them-all

    Amazing amount of people are still in a different world.From Footnoted:

    While some companies seem to be curtailing their use of the corporate jet over concerns over how that might look, footnoted frequent flyer Qwest (Q) just signed another agreement with CEO Ed Mueller to let him continue using the company’s two planes for the next two years.

    The agreement, which was included in the 10K that Qwest filed late Friday, isn’t all that different from the one signed two years ago — the one that allowed Mueller’s family, including his step-daughter to use the plane to commute back and forth to high school. Back then, footnoted readers voted that disclosure as the worst footnote of 2007. Qwest’s stock has fallen about 50% since.

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

    PPT is not the holy grail, idiot. It is best used as a utility.

    There are no short cuts. But it certainly helps.

    Fuck you and your unix bullshit.

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

    I feel like Im strapped in a broke down car staring at a traffic light.. Red/Green/Red/Green

    Marx knows….

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

    This intraday bullshit is making me bald.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  54. Anton Cigur

    Recent history teaches us that the only people who have a God-given right to be indemnified against their own disastrous decisions are the Dick Fulds of our financial system.

    And you’re not a Dick, are you, Newbie?

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  55. Henry Fool

    Hey CAP:

    Now, heads of state who ride and wrangle
    Who look at your face from more than one angle
    Can cut you from their bloated budgets
    Like sharpened knives through chicken mcnuggets

    (Shut the fuck) up
    Yo, shut the fuck up
    (Shut the fuck)
    Right, right, learn to buck up
    (Shut the fuck)
    Right, shut the fuck up, hey, ho
    (Shut the fuck)
    Now, now learn to buck up

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

    well, it is an indicator – it spits out numbers and buy/sell recommendations based on those numbers. And it is not “public” so it is “proprietary indicator”.
    Also, if i had something that helps me make money – i would guard it and never sold it to the public. Instead i would use it in my own trades. If you sell it to loosers (sorry, to “subscribers”) who are ready to pay for it monthly – it means that brings you more profit than simply using it for your own trades.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  57. Henry Fool

    Buy LOPE ahead of earnings tomorrow LIKE NOW while it’s under 18 IDIOTS!!!!!!!!!!!!

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  58. Bernie Madoff

    Did anyone make over $100 today day-trading?

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

    Newbie:

    That’s because you’re an idiot and do not respect the laws of multiplication. With your logic, nothing would ever be sold, since all creators would just hoard shit for themselves.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  60. LOL
    I actually need to create one for our option assignments…need the accounts randomly picked.

    Currently 100% cash
    This market is way too tough to play

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  61. Anton Cigur

    Hope you’re better at the unix than you are at the English.

    Not just the writing, but with the comprendo, friendo.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  62. newbie

    fly do not be such an old suckah! recently you were only loosing with your stupid US down/China up trade, reversing at pivot points… “Utility”? are you mf kidding me? monthly fee? yeah, right.
    Hey, can you make me a favor? whats PPT numbers on BLAH (substitute with any other ticker)? Oh, they are 2.3; 1.17; 3.15 and the overall grade is 2.17? Great! Thank you! Thats all i needed to know! Really!

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  63. Anton Cigur

    I think Leonard the Monkey owns the franchise on the random stock picks.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  64. newbie

    to Anton: ha-ha-ha, very smart spelling in your post! you impressed me and few other readers!

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

    I lost on nothing. My FXI/CHL buys all finished in the green.

    Clearly, I do not like you. As a result, you shall be banished.

    Good Day

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  66. Danny

    God I hope we finish + in each index

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  67. know this

    newbie=commen sense dude

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  68. Anton Cigur

    Tanks (sic), Nooby (sic), it (sic) jus (sic) noing (sic) dat (sic) ewe (sic) kare (sic) wut (sic) make (sic) awl (sic) duh (sic) difernz (sic).

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

    Shut up newbie.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  70. Vikram_Pandit_Has_Monkey_Balls
    Vikram_Pandit_Has_Monkey_Balls

    where are you thinking XOM can go from here? looks like massive top on monthly chart.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  71. Cuervos Laugh

    Just so anyone is clear, any random number generated in any operating system is not random but, pseudo random.

    Therefore, any (p)RNG would not come close to the ‘randomness’ of the market in the first place.

    *note, I don’t believe that the market is random anyways.

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