Dollar strength is just an excuse to sell stocks. It is a symptom, not a cause. The real reason why stocks are selling off is because of “profit taking” and fear that world growth is not rebounding. There are many who believe that the sharp increases in commodities are due to the restocking of inventory, instead of real demand.
While it’s true, it’s too early to tell if world growth is back; it’s also true that there is no way of disproving it, at least not yet. I suspect we will know the answers to these wonderful questions and more, going into September.
With regards to this sell off: buying opportunity.
I know it is a ballsy move. But, until there is hard evidence that can prove China is storing rusted metals in some egregious warehouse, the dips will be bought.
Look you, it’s not time for you to die yet. Chill out, go eat some peanuts and listen to the NY Mets lose another game, in epic fashion.
As for me, I will use the 10%+ cash that I have to buy some of my favorite names, on the cheap. Right here, I like FTK, ARD and ERX, providing they go a little bit lower. In addition, I will keep my eyes open for other market disconnects, by starting new positions—if needed.
NOTE: Despite today’s meltdown, UNG is sprinting higher. I will accumulate UNG into the hurricane season and will not sell it before August.
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DevilDog quit blogging?
Come on…FAZ is up 30 cents…
The egregious methane output from mrkcbill was responsible for a .5 degree rise in global temperatures. Source: Al Gore
I guess the circus has left town, TZA is on fire today.
For those interested the 200 day ma is at 1.3610 in the Euro. We should try to at least touch that.
The other disconcerting thingi is that the Euro-yen is taking it up the backside a pretty good liquidity marker. Euro/Yen needs to hold 135 which is right here or it’s a new ball game.
I bought some Euro and aussie here with a stop tighter than a virgin with stops and reverse.
Jed, always recognizes the obvious by saying- “Ya Think” or “Tell Me”
Now this is Fly at his best, shit goes against him and he adds where most run.
I’ll take back my previous complaint about you….
You buying here!?
Huevos grandes, Senor Tropicana…huevos fucking grande
We broke through 928, which means the next support is 880…
I might initiate a short on retailers….whether oil rebounds or not…
Oil down = world growth not returning
Oil up = less discretionary income for consumers = bearish for retailers…
950 SP500 it is a HUGE resistance as it was for 2002 bear market.
Looks like Fly is taking direction from little ole me. I got on the UNG train last week, a good 10% lower. This train is leaving the station and won’t be returning. I promise you there will be a buzz soon regarding the complete replacement of gasoline vehicles in favor of natural gas this summer. When that finally happens, it will be time to sell again. In the meantime load up on CLNE and UNG for nice gains this summer.
I don’t understand why people are selling stocks because the dollar is a little stronger? The other side, a weak dollar should be the reason to sell the dollar. Furthermore the rhetoric that came out of the BRICS is dollar supportive and US asset market supportive as they said they see no other possibility other than the Buck as a reserve currency for the time being. They hold 45% of Dollar reserves.
This is not the same climate as March and before in that a stronger dollar meant weak stocks and the correlation was 1:1. it’s a different market. So if you’re trading stocks the stronger dollar should not be the reason your selling or going short.
not buying yet mike. i said a little lower. but my sense is this dip will be temp.
Fly, will you be buyign more TRID? Shit has hit the fan.
Goldman hiding money in Swiss Bank Accounts . . .
Who else noticed the article that hit the wires reporting that two Japanese nationals had been arrested on the border between Switzerland and Italy? If the account is correct, the Italians found 134 BILLION dollars in US treasuries hidden in a secret compartment of a suitcase. If true, it seems to me that kind of money could only come from a government, a large multi national, or a big bank. So is there the possibility of a mega-fraud or looting pre bankruptcy lurking out there?
http://hardrightedge.com/dor.htm
TRID is like a ribbon on a fan. It will go wherever the market is blowing.
I will not sell TRID. But, it is not at the top of my buy list.
CA blog is taking a breather.
Why doesn’t this site have integrated chat rooms? You mentioned that ad revenue is negligible, so why not have real-time chat instead of constant page reloading?
intra-day: I am down 4.2% and loving it, in a very odd way.
Off to see about a cup of coffee.
Mattress;
.
Mattress;
it seems to me that kind of money could only come from a government, a large multi national, or a big bank.
That is possibly the stupidest conclusion anyone could reach as is destined for 911 truther sites.
Just a note UNG has overtaken DXO as my largest position. You might remember I have been buying UNG from 12.73 and have been selling DXO after a 102% gain. DXO has been halved as of last Thursday, I will not sell any further DXO but instead concentrate on UNG into the Cane of Death season. I have been shorting UGA to further hedge commodity exposure as I believe the market cannot continue higher if gasoline exceeds 3.10 to 3.25 national.
Obama is talking, good for another 25 point drop in the DOW….
weak $ didn’t keep oil from pulling back. Banked on DUG which was bot Friday.
Hey guys,
Is there an alternative to UNG? My broker can’t trade it.
Thanks for your ideas & help!
Where is devildog Fly? We, pikers, need his wisdom on the market direction. Are we going up or down? Shall we buy more FAZ into this FAZ explosion? FAZ up 32 cents as I am writing this!
Did you fire him? IBC cannot function if you dispose of such valuable intellectual capital.
Concerned Piker
Dear Leader in North Korea is capable of forging bonds, but you would think that the Treasury would be capable of keeping track of billion dollar bonds, no? There are few corps with a market cap beyond $134 bill. A strong dollar is in the interest of a net importing country…..but we live in Obama World now.
I agree wholeheartedly Mr. Gap. I am long UNG also, but I didn’t get quite as good of a price as you. I got in the day UNG shit the bed and came back strong to close up. To me, that was a clear signal of a reversal, and it has not disappointed. I, too, plan on holding through the summer months, and I expect that as gasoline prices make it above $3.00, there will start being some serious talk by politicians about using nat gas instead of gasoline.
The truth of the matter is that natural gas is still over valued from a historical and supply perspective. We have so much of it, that it could easily be used to replace gasoline. In addition, with the near complete shut down of the industrial complex, the demand for natty is way the fuck down.
These longer term realities will not keep UNG down for the time being though. This bitch is running like it is gonna test $16 today.
Fly, I think you’re thinking too close to home. Take it out a level and think about Latvia. Think Swedish and Austrian banks.
Read Daniel Estulin’s “The True Story of the Bilderberg Group” and also Carroll Quigley’s “Tragedy and Hope.” All documented and sourced.
The truth is right there waiting.
PU…time to flush the toilet.
UNG and NG – both from Barrons and Marc Faber – wait until the pullback.
Obama just said that health care is threat to the federal budget. How does he do that with a straight face? Why doesn’t one reporter ask him this question, “Sir, isn’t it true that you have no knowledge of economics and depend on others entirely?”
When will the Vote icons return?
Fly,
Are you loading up more GME?
I’m also very bullish on $UNG! I’ve been watching this triangle form in the futures price: http://bit.ly/ZXJTL