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
23,447 Blog Posts

Change Places

With Fitch screwing Spain, I shifted my position.

I bought 50,000 FAZ, south of $14.85 and 50,000 VXX, under 29

UPDATE: Fitch must have seen The PPT score of 3.17 (I kid).

Anyway, all of the things that scared me out of the market last time are creeping back. Credit agencies acting all gay and shit. TLT going up, as people do the “Hugh Hendry” with great ferocity. FXY is going up, as the carry trade unravels. And, the FXE is tanking, due to its failure. So, without hesitation, I went to 50% cash, more than doubling my cash position from yesterday. I sold out of some ATPG, at an egregious loss. However, I still hold some. I sold out of my largest position, EMN. And, I sold out of RAX, MTW and  FLS. Basically, I sold out of all of the shit that I bought earlier this week.

To a stranger looking in, “The Fly” must look like an indecisive psychopath. However, that’s exactly what I am, AND MORE.

I change my mind all the time, which for some odd reason, has gifted me with a lifestyle that you middle class assclowns could only dream about. At any rate, that’s my new position.

I will be adding to my VXX position until it is 15-20% of assets.

NOTE: For PPT subs, June’s Seasonality Report is ready.

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52 comments

  1. TheArtist

    well well….

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  2. francesco

    Fly you time the market abominevoly well as for late ..

    anyhow ..

    50000 vxx and 50000 faz .. on the go , ala “let’s go”

    not questioning your health , just the trade ..

    sure you didn’t miss any 0

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    • M Night Shamalamadingdong
      M Night Shamalamadingdong

      Is “francesco” Italian for douche?

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      • TheArtist

        I believe douche is translated in all languages as douche.
        ha

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      • francesco

        not for douche
        at least at this very moment

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  3. xxxHuggieBearxxx
    xxxHuggieBearxxx

    Well this is a bit of unexpected nastiness.

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  4. YaBollox

    Fitch is one smart MF-er!

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  5. Scavenger

    The downgrades of the PIIGS were and are expected. The Koreans won’t do anything. BP will plug the hole. Oblahblah will take a vacation. We will forget these over the long weekend and then our stocks will go higher AND MORE!

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    • Yogi and Boo Boo
      Yogi and Boo Boo

      I disagree. The politics of the GOM is turning into a very big mess for the President. He’s mishandled the entire affair, and unless he get’s it together, this will certainly be his Katrina. So far I’m not impressed he “get’s it”. When James Carville is on CNN 24/7 screaming at the prez, you know there is a very, very big problem. It’s a long time until November, and there is a lot of damage that can be done. Uncertainty sucks, not knowing the outcome of legislation sucks, but wildly changing policies and directions is the worst thing that could happen.

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      • This just in

        Before Obama became president, he had a summer job at a wellknown wellhead blowout protector factory. His job was to tighten one bolt on each unit as it came by. He worked on the unit that blew out.

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    • YaBollox

      BP could have done this a month ago, but they were trying to save the well. The bastaaads should be driven Banko.

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  6. Phil_from_Brazil
    Phil_from_Brazil

    This market looks and feels like it wants to vomit all over itself. The outlook is ferociously bearish medium and long-term. For what it’s worth, Hugh Hendry’s Eclectica began building a short position in China in May and expects a “dramatic collapse”, Japan-style. He’s trying to mimic the Paulson trade on the subprime meltdown in China. He now joins Jim Chanos, betting aggressively on a China murderhole plunge.

    http://investmentwatchblog.com/hugh-hendry-shorts-china-betting-on-1920s-japan-like-crash/

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    • The Fly

      Hence I am now cruising in my brand new FAZmobile.

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      • TheArtist

        question, does the FAZmobile dock inside the Time Machine or does the Time Machine dock into the FAZmobile? which is the mother ship?

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      • lol

        Would you ever consider shorting one of these leveraged etfs instead. (like short FAS), or would you rather not put your balls on the line and risk a short squeeze?

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        • speedius

          Hard to borrow? I short both sides but often have trouble borrowing shares when rebalancing.

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  7. EN1GMA

    the crash of 2010 coming soon….

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  8. Big Bird

    Wow. Good luck with that trade. Me and my vagina will be watching from the sidelines.

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  9. tradingnymph

    indecisive psychopaths………..aren’t we all?

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  10. BernieCornfeld
    BernieCornfeld

    ” …….like an indecisive psychopath” but you are OUR “indecisive psychopath” /insert little heart emoticon!

    Sir, the PPT called it. It just so happened this time I listened!

    When we tagged 3 it was time to flatten out. I know you say it doesn’t always call the tops proplerly, but its still a good indicator to trim the sails.

    Cheers All….see you in 2 weeks

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  11. Kenny

    Sold ATPG ??? why not sell FTK too ????

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  12. bubo

    Fly,

    How about PKX? Still keeping full position?

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    • The Fly

      Still keeping whole position, in the event they need to RAMP UP production to fuel a war with N Korea.

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      • Po Pimp

        Might be difficult to ramp up production if the crazy pygmie up north nukes their factories.

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  13. Purdy

    The energy play now may be NG. Nat gas was becoming a toxic waste disposal problem/byproduct of oil production. Now, everything may be changing. Shale gas is getting more expensive to produce and new Gulf drilling restrictions, together with predictions of a rough hurricane season, argue that gas may get bid up. Above 4.60, it should fly.

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  14. MarshalN

    If we thought Greece+Portugal was bad….. just wait till the Spain shoe drops. This is just the beginning. It won’t end until they either use the 1 trillion they promised, or the Euro blows up.

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  15. FTK'ed

    Fly…”ATPG” has reached the target of 10.61 that i mentioned the yesterday…FYI

    Cheers

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  16. arch

    fly,
    may i short some hot pizza slices from you…. as td ameritrade is fucking me big time… its not the stock
    i own but the fucking servant..

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  17. JR

    From previous post:
    TradingNymph – If you’re referring to Paul Tudors prediction of the 87 market crash, he talks about it in the First Market wizards book. In the PBS special “traders” featuring Paul Tudors, he talks about an upcoming crash(1987) and what his theory behind the crash was. Are you looking for the video or are you just remembering where you read/saw the info?

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    • FOO

      I heard that he pretty much was like Bob Prechter in that he was predicting a crash for awhile and in trying to prepare for it, he was pretty much overly hedged, missed out on gains, was short far too often, and didn’t even really capitalize that much off of it.

      On a side note the market wizards book is awesome

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    • tradingnymph

      Jr…Somewhere he talked about specifically about how he sells half at resistance and the other half just above resistance ……someone asked for the specific link and I have been trying to remember, where the heck did I see it…….I have read a lot about PTJ cuz we share the same birthday….and besides Ed Sullivan I have never heard of anyone else that shares it with me….

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      • Canetti

        I was the person originally asking for the link – I’m interested in the market “manipulation” aspect, as your original post that piqued my interest indicates that Jones, and other big fish, actually use our much fretted-over, retail-investor limit orders and stops against us and to their benefit.

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        • tradingnymph

          Can, I am still looking…I will find it….btw can I call you “Can”

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          • Canetti

            Hey, I seem to have assumed it was okay to call you “Nymph” (though I think I saw other people doing it first), so who am I to say you can’t call me “Can.” 🙂 That being said, if that was a subtle way of asking that I not take the liberty of shortening your name, just let me know. Otherwise, “Can” is fine by me!

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          • tradingnymph

            Everyone calls me Nymph…..”Can” is harder to spot but easier to remember…the whole system is called “wash and rinse”….PTJ doesn’t call it that, but that is what others call it. I believe Joe DiNapoli who I met at Traders expo does it, I believe he shifts his MA’s to work it out.

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        • JR

          They do, but I don’t believe it’s market manipulation per se, more part of “the game” – a strategy, at least the way I see it. I tend to use discretionary stops/limits for this reason. Paul Tudors talks a bit about his strategy in the documentary. He also mentions that he(and I’m sure others) uses mulitple brokers to conceal his buying and selling from other traders as well as changing his contract size. I highly reccomend you read Reminiscence of a stock operator. This book will help you. There is also a great story in Confessions of a street addict about Jim Cramer getting screwed shorting a stock by a few hedge funds.

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  18. PPTer

    I just want to say that I believe this whole idea of the PPT being “your brain, converted to code” no longer seems to be the case. The PPT seems to have evolved and is taking over the world, much like skynet. You shouldn’t have given it access to your time machine.

    As Jack Bauer would say, “Dammit!!”

    I suspect an epic Man Vs Machine battle to unfold during the dawn of the appocalypse

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  19. wilmer

    I don’t know. After yesterdays huge run this sell off isn’t much.

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  20. Indie

    love the HH pic.

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  21. Bullish

    I have gone 50% cash. No sense in being a hero this Memorial weekend. When everyone comes back Tuesday to trash this market at the open, I will be rebuying the FAS. Or as the Fly would put it, I will be buying your margin calls! Sorry, Fly but I love that line.

    Good luck with the FAZ. I prefer to sit in cash and only spend my Monday making sure I don’t burn the burgers instead of my portfolio.

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    • francesco

      savvy enough ; I am 100% cash as the week end will likely build something ( I still don’t know ) into this no-mans-land point of no return .. market is so vacuum and institution driven that it smells fake from all the tol windows ..

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  22. Sam

    Yep, this is one homo market. My hedges (ES shorts) are doing better than my core positions. Tells me some tweaking needed in my portfolio before next Tuesday.

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    • Harry Taco

      Volatile, but an obvious buy. The spain stuff was a formality and it is already priced in. US equities are the only safe bet and I betting it all. Good luck with your doom and gloom strategy.

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  23. A Monkey with No Hedges
    A Monkey with No Hedges

    You are heading for 20% VXX, really?

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