iBC blogger, Scott Bleier was one of the first to call it, back in June. At that time, most were still “Rick Ross’n”, long the market, banking coin on the dumbest stocks since 2000. I think it’s fair to say, the part is over and the sledding will be getting progressively harder, as the screws tighten around Europe’s gayest countries.
Going through my screens, so many insurance and economically sensitive names are in grave danger of becoming headline news. Remember, the insurance firms invest their premiums in equities. Speaking of equities, do not forget about the pension liabilities of large corporations who made overzealous projections. The deficits will choke off these stocks and suffocate investors, amidst chards of metal and copious amounts of black smoke.
Although it’s hard to initiate shorts here. I am fairly convinced the primary trend is lower. Therefore, if I do begin to short here, I will do so in increments. If the S&P is going to 850, there is a fuckload of money to be made on the short side, even from current levels. Do not feel like you missed out because you weren’t short GS at $150. This is “other side of the mountain” pin action, supported by a rapidly eroding economy, tends to spiral out of control lower, before normalcy. Things will always ebb and flow, as policy makers try to salvage the recovery via aggressive stimuli and/or quantitative easing. However, this has a distinct feeling that the horse has left the fucking barn and is now shitting all over the farmers house, kicking in windows and shit with his stupid horse shoes (I don’t like horses).
Inside The PPT, I put up a watchlist of names on my “to short list.” I will be updating it often and will alert members of my game plan as it progresses.
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