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
23,445 Blog Posts

Scale Out

Recently,the stock market has been like an orgy of intelligent people, raping one another for the scraps of the American Empire. People with higher IQ’s than NASA engineers have been buying the lowest quality, just to play “casino time,” sponsored by the fucktards at CNBC.

As the market frenzy keeps people chasing the next squeeze, I will be unloading my manure on unsuspecting garbage collectors soon. Remember, shit rises to the top, just before the bottom falls out.

I have visions of a Cinco De Mayo massacre.

At the present, I am 20%+ cash, loaded to the gills with small cap offal, that can either drop by half or double, within the next week. Neither scenario would surprise me.

Upon selling stock, I will leave the proceeds in cash. If there is something that MUST be bought, I will force myself to make a choice and sell something, in order to raise funds. The top of this recent run will be marked with the average runner dropping 10% or so— in a single day. Most people will hold tight, thinking the run will continue; but their disillusion will be their downfall.

The next downturn will be quick and decisive. However, instead of shorting it, I may opt to “cash up” and buy the dips. After we top, I will be looking for a 10-20% pullback, in a variety of leadership names. On that dip, I will redeploy cash, long.

So, in summary, “The Fly” will scale out of his current longs and make a sincere effort to resist any new buys. When the casino is operating at capacity, it’s always very hard to resist playing, as you see peers and enemies make millions— in seemingly simple trades.

Trade accordingly.

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65 comments

  1. Woodshedder

    It is seldom that we agree.

    I like your plan.

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  2. Thoughts on SONS and ALU earnings tomorrow AM?

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  3. Anthony Brown

    I also agree, although like an idiot want to profit off this pullback – so I’ve picked up some $SRS and shorted some $BBY today.

    Meanwhile, I’m loving this move in $UNG! I’m surprised you’re not playing any of these commodities.

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  4. The Fly

    Are you blind? All of my recent buys have been commodity related.

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  5. Ring

    thanks FLy..i sold coex on friday..my bad…..Josh killed me

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  6. Anthony Brown

    I’m sorry, I have noticed that – what I meant to say was that you haven’t been playing with commodities directly, it seems to be mostly the industries surrounding the stuff.

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  7. Jed

    mrkcbill spends countless hours wondering why Cinco de Mayo always falls on the 5th of May each year.

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  8. Jimmi Rogers

    I see that you little people are following me into commods after calling me names like “bowtie man”. You better buy Asia because the USA is fucked, pure and simple. You have morons in charge who are destroying what was once the greatest country in the world. Signing off, from Singapore.

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  9. London

    I’m already 70+% cash; may actually look at adding some srs or sds for a little while. But mostly just waiting to go back long equities and longer TBT when the time’s right.

    SRS may actually be an opportunity (unlike FAZ which should just be pulled) – a case can still be made that CRE fundamentals suck and that “survival” is not the same as “profits”. Combine that with regional banks getting trashed over CRE concentration; a BIG difference between retail stocks expanding vs. store footage expanding… SRS could see another day.

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  10. j0sh1ngU

    didnt you just said bears are screwed in your previous post. like your idea though as we are in upper trendline on channel

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  11. PoorOkie

    Thinking of selling my FAS and adding to SDS tomorrow – any thoughts? I’m not very good at timing but it seems like the right move.

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  12. Damon

    Praise the Lord (of the Fly), grasshopper.

    Finally got out of my S trade.

    Talk about a month seeming like a year, only to get the earnings move, which was like some kind of premature sexual discharge.

    Anybody in the mood to short the financials based upon stress-test/cinco de mayo/overbought market end-of-week bullshit?

    BAC? GS? hmmmm.

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  13. kush

    im surprised u dont go short overnight fly. very much so indeed. its alright tho, im shorting xtxi crox wres pcx fig mea ftk and wfc, heavily. have a good night

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  14. kushzilla

    unfortunately my evil side says also go long them all heavily with a 3%stop loss on either side. mwahahaha

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  15. Aris

    i’m just going to ride the reflation trade until the dollar bounces (if it bounces). theoretically, the dollar could go down a long way from here. i doubt it will, but it’s not impossible.

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  16. JakeGint

    Already nailed on a bunch of GE at 3pm today that only ended trading up another 2 cents, and got out of all but a sliver (2k) of UYG, which proceeded to go up another 23 cents, dammit.

    Cautious, but not jumping any guns, either, as Josh has not capitulated.

    __

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  17. The Fly

    Everyone STFU, I am trying to get some sleep around here.

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  18. UBS

    At least Ghetto Fab didn’t bring his stinky fucking dog to work (150k/month).

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  19. Ryan

    http://tinyurl.com/co36ek Alcatraz Lucien is having trouble.

    I am inventing sham wow tampons

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  20. Anton Cigur

    Heartbreaking as it is, after idolizing NASA as a kid, I know a guy who boasts a high-level NASA software development job on his resume.

    Meet this clownish poser and you will never again connect a NASA job with a high I.Q.

    I mention this for the sake of your analogies, of course.

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  21. schizo1688

    Hey Fly
    YOU ARE THE BEST THERE IS …. i wont doubt you again

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  22. Read thiss: Short Selling of Banks Accelerates as New Stress Test for Financial Firms.

    http://www.bloomberg.com/?b=0&Intro=intro3

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  23. mrkcbill

    Jed, likes to celebrate Cinco De Mayo at “On The Border” with his usual “Classic Chimichanga” and a Diet Coke.

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  24. El Ditto

    Took your advise yesterday. After a hugely profitable day, thanks to IBC and PPT, started selling.
    Long Live the PPT!!!

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  25. Maelstrom

    Fucking Jed and mrkcbill make me laugh my ass off..well done gentlemen

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  26. kidstock

    GERN jumping for those of you playing at home…could be a big mover today.

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  27. Fly Guy

    OCNF gapping up nicely!!

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  28. TheArtist

    Good Morning Vietnam!

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  29. ZMoose12

    Completely agree. Taking up the SMN/DUG option during this time, then scale into dip buys.

    Gotta love this shit.

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  30. TheArtist

    The Grand Illusion

    remix.

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  31. gappingandyapping
    gappingandyapping

    I only hope your thesis is proven. I am currently setup perfectly for it and heavy long ung and dxo as mentioned last week.

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  32. kidstock

    AIG might be worth a look for any of you OTB degenerates – loaded up yesterday @ 1.44.

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  33. TheArtist

    Piece of shit TD Ameritrade server is down fucking again!!!!

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  34. gappingandyapping
    gappingandyapping

    I was really worried I had missed some gravy yesterday when I sold out of ALU at 2.66 for a 30 cent gain but now I am feeling better. By the way I sold ADBE the other day right at 27, I rode it from 17.16 and will plan on buying it back for another go round when it comes down into the 20ish range. I think 15% can come off of it. I will not sell any commodities into this, my biggest position is DXO and it will stay that way.

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  35. so i herd you liek mudkips
    so i herd you liek mudkips

    JASO broke above 4.20 (their 3-month high resistance and top of the flag). today is another great day for stocks with “X”es in their ticker symbol.

    big thing to watch today/tomorrow is if CL (crude) breaks above 55, crude inventory report tomorrow…

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  36. j

    Artist:

    Get yourself a phone jockey. I can’t imagine trading online. It’s so, so unpleasant.

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  37. j

    Piece of Shit MON never lets up. i wanted to buy it on a dip and the disgusting thing just keeps going up.

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  38. TraderCaddy

    Done for the AM.
    Thanks SMH short, XHB long.
    No thanks to my QQQQ short which was dead $$.

    Just a note.
    This rally has been on crap volume compared to the volume on the way down.
    Milk it long while you can.

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  39. The Frog

    If there isn’t a bomb dropped on the conference call SONS should get out of this range today. The earnings have already been announced and the stock rebounded after a very minor sell off. Could be a good one to watch. Fly has been in it for a while already, I know.

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  40. hmmmm

    MVL and WYNN getting all silly.

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  41. j

    Can someone tell me the symbol of the bond EFT some of you watch here. (I always look at cash). Starts with T?

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  42. rockybalboa

    Hey FLY…

    Congratulations to you on your good calls. Do you have a target sell price for NXG & FTK? Would like to know if you are you planning to scale out of these two before earnings on Thursday?

    Keep up the good work!!

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  43. so i herd you liek mudkips
    so i herd you liek mudkips

    j: IEF and TLT. higher is lower-interest/higher-bond-prices.

    i know this may be redundant: fed appears to be saying “fuck the long bond” and keeping shorter-term bonds tighter so that the banks can make free money (they borrow short and lend long, blah blah blah)

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  44. chivasontherocks
    chivasontherocks

    TLT

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  45. Cash-N-Guns

    STEM breaking out..could spike..own it.
    EDGR moving up…
    ARM…looking good here..

    XTXI…wtf did i sell way too early– Fuck me twice!

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  46. j

    Thanks a mill guys.

    Chivas hope you’re feeling great and getting better each day. Also hope you held on to that GE pos.

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  47. TheArtist

    J, I’d just jump in MON, the ag names are slow but steady right now….people have to eat and farmers will always have to buy fertilizer…more crop yields equals more cash in the farmers pockets at years end…. farmers are NOT going to stop buying fertilizer, if they do, the world is burning and we are soon dead.

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  48. j

    Artist

    I bought some of that douchebag stock yesterday on the way up. I wanna buy the balance on a dip.

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  49. jingle

    USU moving. I think congress taking up energy policy. URRE and CCJ worth watching as well.

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  50. The Contractor
    The Contractor

    The “blogs” tab is not working for me. Is this on my end or is anyone else experiencing this issue?

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  51. TX Slave Trader
    TX Slave Trader

    It would only be appropriate for those who frequent this forum to pick up a little COIN. They actually have a really interesting business model and could be breaking out here……..

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  52. jingle

    @contractor
    tab working ok here

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  53. The Contractor
    The Contractor

    Ok–thanks jingle.

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  54. chivasontherocks
    chivasontherocks

    J,

    feeling better. thank you for asking.

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  55. Henry Fool

    loading up on ILMN pullback to 37 here

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  56. Henry Fool

    ILMN is headed for BO over 40 then maybe 50

    this pullback to 37 in base is excellent entry

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  57. isay

    Henry, why would it break thru the triple top.

    What makes you think it won’t continue down to 34/35 and make that wedge.

    I’m not doubting your call, just wondering what you are thinking.

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  58. Homo Bob

    CAR starting to BTFO, Fly wins again. Opps, I mean CA and RA win again.
    Cheers!

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  59. gappingandyapping
    gappingandyapping

    Let me get this straight, we have GDP of negative 6+% and Bernanke is saying we will have positive GDP within a couple months? What the fuck? Seriously? If this is going to re-inflate that fast it would be a major shock to the system and I want to start swimming in commodities and anything where factories are offline. Essentially it means a massive hyperbolic recovery and not a smooth trend back toward the mean.

    This market goes from Euphoria to Torture and back to Euphoria. People Market models will not be able to handle these massive fluctuations.

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  60. so i herd you liek mudkips
    so i herd you liek mudkips

    bernanke is giving really shady answers that really spin the questions into a different question. i like how he has a “tell” of nodding after his answers is bitchingly deceptive. all of his answers are technically correct but completely avoiding the spirit of the questions.

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  61. bait bucket bitchez
    bait bucket bitchez

    There is nothing nefarious going on down at the fed, bernanke sed so.

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  62. j

    gapping;

    We/you don’t have GDP down 6%. It’s 6% down for the quarter on a annualized basis. That means GDP fell by 6 / 4 =1.5% for the period, so a positive GDP in say the 3rd quarter is not beyond the realm of possibility.

    And it would be a massive fluctuation as you’re suggesting.

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  63. mike

    Anyone buying FAX as proxy for cash?

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