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

Don’t Worry, Ben Has Your Back

Irish, Greek and Portuguese gov’t debt spreads are at record highs versus German, up anywhere between 30-50% from October. TLT is tanking, which means the dollar should be tanking, no? Wrong! We are in opposite land, where nothing is what it seems. The dollar is up nearly 1%, as Treasuries tank. Someone has a lot of explainin’ to do.

The market is pulling back, after a fanatical run, led lower by banks and CRE. Scared yet?

Hardly.

My Chinese Lotto stocks are “reverse lottoing,” which is expected. When one endeavors to play inside of an active volcano, such a person should expect to get burned. Easy come, easy go. I was one click from selling out of my HEAT position this morning, but opted for a coffee instead, literally. So, instead of being up 19% on the position, I am up 9.4%. That’s an expensive cup of shit. Furthermore, I kicked out of my PWAV position, just because. And, I bulked up on a little GMXR, which moved nicely higher intra-day. Pretty much all of my positions were down today, with the exception of one particular name: FTK.

Here is my dilemma.

Year to date, FTK is up 45%. More importantly, over the past 3 months, the stock is up 39%, making it the 8th best performer in the oil/gas equipment and services industry, over that time. Typically a good problem, but not now. Because of the big move higher it is now too heavily weighted, for my taste, in my portfolios. Meaning: I have no choice but to sell or opt for a riskier alternative: spend all available cash and maybe leverage, in order to diversify.

I can go about this in a distinguished manner and try to “hedge” again. Or, if my thesis is to be long, going into Turkey Day, I can just buy “fuckloads” of bullshit stocks cheap, then sell them when they are expensive.

I will ponder this problem thoroughly, over a 2 1/2 inch thick rib eye, heavily salted, lightly peppered—later on this evening. Into the bell, the sell off is intensifying, as fucktards get stomped into the funnel. As I close out this poem, I am down 1.1% for the day.

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48 comments

  1. wilmer

    Indued!

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  2. TA

    That piece of shit VXX is over 40 again
    Those who can short it with a multi-month timeline should do so

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  3. TheV.King

    Fly spoke with you know who about that thing I did for you know what…

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  4. Quantatative Weasing
    Quantatative Weasing

    Dude, you wrting skills are second to none!

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  5. Chris Cooper

    Gotta love how the FLY puts his words together. Giving him props, but at the same time not on his nuts like most of you turds are lol. Will have a video out tonight. GMXR great call!

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  6. Omeizer

    Ribeyes are for paupers. Big sellers at Sizzler however.

    Hop on your Vespa and pick up a McRib while you are at it….

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  7. go2mars

    Opposite Land. That explains the liking of natural gas in the previous post.

    MMT busted over 0.6 for me (from 0.24). In addition, the secretary just walked in and handed me box tickets for an Ozzy Ozbourne show next week! I better go buy a lotto ticket on the way home.

    Further upside to MMT if you like oil over the next 2-3 months.

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    • go2mars

      Hahaha! Mart Resources MMT at 0.70 now. And still on a tear. $0.90 by Christmas.

      Try Sea Dragon too (SDX).

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  8. Trading_Nymph

    China Trade data tonight…..could give insight on Turkey Play.

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    • ???

      Turkey play…. lions suck on turkey day…long cranberry sauce in the can…short… stuffing.. from fancy breads… long…2x leveraged play on pumpkin pie…bet .. uncle milton.. loses dentures at the table… scares the kids…

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      • Matthew Stafford

        Lions won’t suck, now that I am… Ouch, re-injured my shoulder typing.

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        • heaterman

          All Lions quarterbacks are doomed until such a time as the front office sees fit to procure a decent offensive line. It can be no other way.
          OTOH, the D line is making me smile deep down inside. Give that group another 2 years of experience together and they will strike fear in the heart of every team they face. Suh is a freak of nature.

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    • The_Real_Hmmm

      Allen Iverson went to Turkey to play.

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  9. Quint

    Bearish outside reversal day in the NDX – the market leader – means this market is looking at more downside in the short term…I think we open down 1% or more tomorrow.

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  10. Skynet

    Fly:

    My gut said to sell out of HEAT this morning, paid off; net was 18.4%

    While I was at it, hit the eject button on LPH, OINK & FEED with avg. gain of 11%

    Have a good day.

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  11. Axe Cop

    “Tigers love pepper, they hate cinnamon”

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  12. TheFakeNympho

    BIG NEWS… China’s Dagong downgrades US sovereign credit rating…. from A+ to AA..
    http://www.reuters.com/article/idUSN0929276220101109… Of course Dagong… is famous worldwide.. as one of the former judges on … The Gong Show… and is a major manufacturer of.. vibrators and … other sexual devices… an emergency in Indonesia.. is developing.. as Pres. Obama has locked himself in the bathroom… of his childhood Madrassa.. and refuses to leave until Michelle Obama.. loses 35 pounds.. and stops nagging him… watch for a drop in copper supplies in Tibet tonight.. as Tibet will be building a copper statue of.. Mongolian prince Khuden .. and last but not least NO POMO for any HOMO

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  13. FIG

    IMO, selling FTK now would be quite foolish. I am expecting that it is just starting its move. I know you dont care about what I think, but from everything you have said, you feel that FTK is still quite undervalued.

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  14. Bullish

    Out of curiosity… Why ribeye? I would have expected a filet or a porterhouse.

    I get my filet’s specially cut to 16 oz

    Yum

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  15. theman

    stomped into the funnel indeud

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  16. Bullish

    I’d love to see Sarah Palin versus Ben Bernanke in a face to face debate on QE2…

    She really shouldn’t attack the fed with zero knowledge of monetary policy. Just gonna make her look silly, but that’s not very hard to do anyway.

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  17. Le Fly

    Ribeye bone in is the only way to go. Ask any foodie or man of substance.

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  18. alphadawgg

    Dollar/Euro…which is the taller midget?

    I concur on your ribeye choice.

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  19. TraderCaddy

    I concur on the ribeye, also.
    I like to grill mine outside and sometimes get a good smoke going with some citrus wood I have before I put it on the grill.
    A key is to turn it only once and use tongs being careful not to pierce it.
    Although, I made a lasagna tonight which would make Grandpa Fly ask for seconds.

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    • The_Real_Hmmm

      Turn it once on each side and flip it once, man. Gotta get the

      \ \ / / \ \ / /
      \ \/ / \ \/ /
      / /\ \ / /\ \
      / / \ \/ / \ \

      on each side. Forget the meow mix recipes that call for bacon wrapping and go for something with ground espresso, ancho/pasilla chiles, cumin, coriander, and/or other spices.

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    • The Fly

      Grandpa Fly always had seconds, irrespective of food quality.

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  20. go2mars

    Good tune with that post.

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  21. TheV.King

    It’s all very simple….
    http://www.youtube.com/watch?v=qybUFnY7Y8w

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  22. JakeGint

    On a pullback day like today, May the Cher Be With You!

    _________

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  23. brian

    http://seekingalpha.com/article/235809-understanding-the-mechanics-of-a-qe-transaction?source=hp_latest_articles

    fly . I would love to hear your take on this article

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    • WTF

      Brian, I think you better read comments on the article at PragCap. They clarify a lot. This is all explained by the Modern Monetary Theory. Key question is what exactly are the effects of this asset swap to banks’ operations and whether the recent run is justified by fundamentals.

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