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
23,436 Blog Posts

Milk the Drillers

BP, RIG, APC and the entirety of the oil group are enjoying a fucking rout in their shares today. I think this is just the beginning. Granted, if you value the shares based upon proven reserves, using today’s price of oil, you’d come to the conclusion that all oil and gas stocks are “prison cheap.” However, if my deflation premise is correct, a sharp “broken jaw” move to the downside is due, for oil, literally any day. Also, with BP raping the Gulf and the entirety of the South East United States, I foresee a “blue blazer” event taking place, again, literally any day.

New rules and regulations, coupled with declines in commodity prices, yet to be seen, leads me to believe going short oil, via ERY, is a fucking bet worth writing home to Mom about. As a result, with my personal cash horde, I swapped out of TZA for ERY, going full tilted retard, short, into the bell.

NOTE: It’s also worth noting that CDS spreads have been blowing out for BP and APC. Should they go bust, the rippled effects will be devastating.

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42 comments

  1. xxxHuggieBearxxx
    xxxHuggieBearxxx

    in for 1k

    down with oil

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  2. Kreizi

    Smart. Not often we get to know the reasoning behind your moves.

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  3. Kenai

    Hi Fly,

    Just to clarify, do you think we should be shorting oil here, or oil companies? Or both?

    thx

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  4. Scavenger

    Put in a couple of limit orders for more UWM. Just a little more panic selling, please…

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    • Scavenger

      Bought some more UWM. We go higher after a day or two, I hope…

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  5. TA

    I pulled back long exposure massively out of pure disgust and it was low to begin with.
    The bulls showing today was beyond pathetic – bears should short the hell out of this market for fun because there is NO ONE taking the other side of the trade.

    We’ll probably a relief rally tomorrow but if we do it’ll be some gap up bullshit that will let the bears reload their shorts. If I had any balls, I wouldn’t be just standing aside here but dumping my entire trading account into Fly’s ERY.

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  6. TheMarketAce

    Fly….Whats the deal with GLDD? Holding up very well today, even given the new dredging laws placed by Obama the other day. Is there something I’m missing here? How has the stock held up over the past few days, even though Obama is placing restrictions? Even more oddly, yesterday it dropped about 6% at the open, and proceeded to make that back throughout the day. Thanks.

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    • The Fly

      It’s a solid company. And, Obama will have no choice but to give in soon, since the well can never be capped.

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  7. Dr Fly

    This English guy on CNBC is cock smacking Bartiromo.

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  8. xxxHuggieBearxxx
    xxxHuggieBearxxx

    Its starting to turn ugly.

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  9. Purdy

    …but I still think nat gas is good. With GOM production issues, 2nd thoughts about shale (flaming kitchen faucets), import capacity limitations, and a decent technical base being built; natty can rise even as oil falls.

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  10. dave

    There is oil all over the planet. Don’t these guys just move operations to more oil company friendly locales like Brazil? How long will it take these guys to pull up stakes and reposition equipment?

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  11. Bullish

    I must be a glutton for punishment. Deployed some more cash at the close…

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  12. Mr. President

    Elegant swan-dive into the close!

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  13. genghis-khan

    Fly, what do we do with ATPG right here? Also, I’ve been thinking of accumulating some Citigroup, any thoughts? Thanks as always.

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  14. Dr Fly

    I am long C, long term.

    ATPG has huge potential. But i sold out near $12. That’s where my head is.

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  15. Spooky

    I’m out on BP. Thanks for the wake-up.

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  16. tm

    So, the idea with GLDD is that we’re gonna build barrier islands, like some kind of reverse moat, ringing the Gulf?? Lol, that sounds practical. Even if they just “strategically placed” some islands, wouldn’t that take like a million years to do? By that point, the GOM will be a fetid hell-broth…perhaps the last baby boomer standing could then ceremoniously flick a lit cigarette in, for the grand “look at me” finale.

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    • Dr Fly

      They don’t take too long. Ever see those islands in Dubai? GLDD helped build them.

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      • The_Real_Hmmm

        You should spring that on Mrs. Fly over dinner. “I got you a palm tree today, it’s being made in the Gulf of Mexico. The tiki torches will never go out and the children will be protected by a Mr. R.W. Pelican. Suchness, indeud.”

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    • Subcomandante Braveflaps
      Subcomandante Braveflaps

      Better go pick up an umbrella…

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    • genghis-khan

      scroll to the bottom of the page to which you provided the link, here’s what it says:

      “mi2g is at the leading edge of building secure on-line banking, broking and trading architectures. The principal applications of its technology are: 1. D2-Banking; 2. Digital Risk Management; and 3. Bespoke Security Architecture. For more information about mi2g, please visit: http://www.mi2g.net

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  17. Wondering

    OK, I signed up for the PPT…I go there and all I see is some “recent comments” that aren’t even formatted properly and none of the hyperlinks do anything. All I get there is a bunch crap about WordPress 3.0. I am sure I am missing something or something aint right with the system right now.

    So someone give a newbie a hint. Where do I go/click once I am in PPT to begin learning.

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    • Caffeinated

      You’re just in the dashboard. Click on the “PPT – Premium” link in the upper left corner to start. You’ll be in the PPT Blog

      The PPT Forum and User Notes are the favorite places for the gentlemen to congregate.

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    • Dr Fly

      That’s just the wordpress back office bullshit. Click the fuck out of there and into the main page.

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  18. drummerboy

    bearshitter hugo chavez talking about nationalizing all u.s. owned rigs in that country,how much more fucked up can it get.

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  19. arch

    will try to get back into FAS@ 21.65

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  20. Purdy

    ’bout fucking time someone asked the following: http://globalwarming.house.gov/mediacenter/pressreleases_2008?id=0275

    So far, the much disparaged Matt Simmons has been 100% correct in his much-worse-than-reported oil spill estimates and speculations.

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  21. Pacific

    who the fuck cares about the oil spill?

    first of all its contained to the gulf and not likely to spread to the ocean.

    the oil will wash ashore or gradually break down. there is much more water in the gulf than there is oil

    the worst that can happen is something like the dead sea. maybe even it can become a tourist attraction

    the gulf war oil spill was much worse and that problem went away with no major issues.

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    • Cascadian

      You could almost be right (sarcasm) if the thing were plugged today. But it’s gonna go on leaking for another 2 months anyways, until the relief wells can be brought in. And that may not work. BP has opened the gates of hell.

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    • T MOE

      What a fucking moron

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  22. Le Fly

    Pacific

    You’re an idiot.

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    • HuggieBear

      i love how he said it will never spillover to the ocean….i started giggling there and haven’t yet backtracked to finish the rest of his statement.

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      • HuggieBear

        “or it could turn into the dead sea, and thats not so bad!”

        hehe

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  23. arch

    http://FunnyOrDie.com/m/428p

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