iBankCoin

Operation Make Me Sick

Everything is falling apart. The world is burning and the Fed is buying 30 year bonds to lower mortgage rates, yet banks do not lend money to people. So what’s the point?

Bernanke stepped in with a meek $400 billion. Not enough.

The result: massive sell off in equities, crushing everything in its path. The GOP should be pleased now, as this economy is sure to devolve into a devastating depression.

As for me, I did everything wrong. I had over 10% of my holdings in TLT yesterday, but sold to finance a purchase in AG. I am now down 4% in my AG position. My tech shares are going lower, albeit not as much as commodities. Speaking of commodities: they are in a NO BUY ZONE, ever. Expect dramatic eps cuts and wholesale liquidations by hedge funds going bust. The sector is over-invested and the great unwind is going to continue. See ANR, WLT and FCX to see what the great unwind looks like.

I am far from out of the game, still up around 9% for the year. However, this move to the downside is especially worrisome because it is occurring at oversold levels. In other words, we could get a real fucked up sell off soon, firmly placing us in the 4 digit range for the Dow.

Just to recap what I’ve been telling you: pricing in a recession, in my estimation, puts the S&P at 850 to 900. Any rallies should be sold and cash should always be heavy.

[youtube:http://www.youtube.com/watch?v=YkI29FjphW8 603 500] If you enjoy the content at iBankCoin, please follow us on Twitter

111 comments

  1. jose mann

    I just threw up all over my alligator shoes …

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  2. Aristotle

    Fly is Great

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  3. jose mann

    I need to stop the bleeding …

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    • ALLPROz

      For all you chartists…

      Even after this debacle, major indexes are still in a 2 month ascending channel, albeit the lower end…for now.

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  4. Matty D

    Great day guys… Hope everyone loaded up short. Drinks on me tonight.

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  5. TMoe

    short SP Emini !!!!!!
    As I said before
    Get in the fucking funnel

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  6. TUTTI

    LMBO…

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  7. The Fly's Mojo

    Help me I am lost and ducking flying sandwiches and Rick Ross gold chains….

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  8. Cato

    Shut up all you fags yelling ‘short short short’.. we get it you cocksmokers

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  9. ruggyup

    All you short shmeckels, STFU, deal with, it’s how you make your living.

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  10. cbgraper

    The market just got punched in the nuts by a gorilla after eating 100lbs of cocain leaves

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  11. TMoe

    GS breaks $100 – watch out

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  12. TMoe

    Total volume 1.2 Bil shares, downside volume 1.1 b wow

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  13. chubby c

    What’s it costing us (the US) to manipmanate [sis] these markets?
    http://www.youtube.com/watch?v=DZAtzcthSxM

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  14. big snacks

    sold my remaining qid on close

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  15. jose mann

    My nutz get crushed, and this is only Wednesday …

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  16. Mr. President

    I was in “degenerate-3x” short into this grotesque display.

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  17. schizo1688

    Market crash at over-sold level,lets all pray for bloody OCTOBER HAHAHAHAHAHAA !!!

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  18. Apocalypse Now

    Glad we all arrived dressed up for the funeral. Looks like a room full of emperor penguins huddled together in the cold of the marctic trying to keep nest eggs warm.

    Becoming like War Games M.A.D. lesson: The only way to win is not to play.

    This is called Awe Shucking a clam.

    Congrats to Alf, in the land of the blind the one eyed man is king of the peanut gallery.

    Safety and yield are becoming a mirage in light of low growth, sovereign debt contagion, and high inflation. Return of capital and not return will be key. Without monetization, exactly who is buying the US debt and will roll it?

    Look at the history of TLT, a huge spike up to 120 back in the last crisis and dropped quickly after bailouts. Now 118.5. If there is a global solution, this should drop and it will be the brown dwarf of shorts.

    Equities are now at risk without significant printing support and bonds have already spiked. If I look at exeters pyramid then cash, bonds, PMs look good.

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  19. dumas

    whose blood is on my tuxedo?

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    • ALLPROz

      That would be my blood young man…I need it back!

      My few shorts left my long in the cocaine dust.

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  20. Mr. President

    Played FAZ & TZA from about 12:00 to 3:45, which worked quite well. If things look dicey tomorrow, I will jump back in.

    Stick and move, stick and move.

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  21. panamaorange

    Im getting sick of swing predicting.

    Any good setups can be trashed by 2am headlines out of europe. Scalping doesn’t have that problem . I still think we trend up for 15 months. But, obviously, it will be choppy as hell. So scalpers will outperform those bears, or bulls, who only do swings.

    I do still think we trend up for the next 15 months. REMX looks like it will bounce at least 20% by next Tuesday. (Barring any fistfights in the estonaian parliament, which will send futures down 300 SPX points in 5 minutes. )

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  22. moolahheaven

    I will stand with the ‘Fly’ like John Wayne hung in there at the Alamo… You’ll get em next time ‘Fly’!!! No one is right 100% of the time. C’mon and rev up that time machine and pull another rabbit out of your tophat!

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  23. jimmy_two_times

    Fed is doind all the wrong things as is Europe. Problem with Europe, not a central fiscal governing body.
    Just keep printing lest they direct us into Hugh’s territory, which is maybe their ultimate plan – would hope not.
    Keep re-reading the Bernank playbook from 2002, he hasnt missed a heart beat at all.
    next step fix the 30 year rate (legislation), then buy the stock market. By then it will all be for nothing unless you have been short.

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  24. @Centrifugal

    Bernanke was also a Vaudeville scholar; few people know this.

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  25. ruggyup

    There’s a guy with posting diarrhea that should be letting us have it soon.

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    • Yogi & Boo Boo

      Isn’t that a sign of a GI virus?

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    • alf44

      …who would that be ?

      .

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      • The Fly

        Alf,

        How about a RECAP?

        .
        .
        .

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        • alf44

          I ain’t saying shiite, Sir !

          But, for the record … I AM still DOWN some !

          Needles to say … today helped … ALOT !!!

          .

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          • The Fly

            No idea why you opted to short tech. Might as well go TZA everytime

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          • alf44

            … it’s pretty much ALL correlated … USUALLY !

            These days …everything moves UP or DOWN … in lockstep !

            Usually !!!

            Throw a dart !!! They are ALL just “trading vehicles” !

            —

            Tech was practically “parabolic” !

            It seemed it was an easy target !

            Frickin’ AAPL was ridiculous !!!

            —

            Was my timing off ? Yes … I was a bit early ! This is why you keep CASH so that you can make adjustments as necessary to average your position !

            I KNOW I don’t need to tell YOU this !

            .

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          • jose mann

            I need all the free trading lessons I can get, fuck …

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          • Mad_Scientist

            Fair and honest. Would’ve green thumbed it.

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          • alf44

            TYVM, Sir !

            .

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  26. checklist

    A recession is likely, the republicans will get their way.

    And to think I cheered for them in the last elections…

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    • wilmer

      If you had done the right thing and cheered for them in 08 instead of jumping on board the “Hope and Change” wagon with all the other retards we wouldn’t be in this position at all right now.

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      • SAC Monkey

        Right and not paying for two wars had nothing to do with it.

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        • Actuary

          Last time I checked, it didn’t look like Bush went to the two wars unconstitutionally. Just thinking aloud.

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      • Duh

        Honestly, you think if McCain was in the White house right now, everything would be hunky-dory and we’d be well on our way to Dow 30,000? You could reincarnate Saint Reagan and we’d still be fucked.

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        • Clamalicious

          @Duh… no, but McNugget would of been a lot better. The thug in office and his cronies have done such extensive damage in such a short amount of time. You can’t take a country that thrived off innovation, skill, ability and turn it upside down into a Socialistic breeding ground.

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  27. Yogi & Boo Boo

    Why the hell would anyone desire a crash from here? You fuckers are sick. Even if you are short, it makes no freaking sense to root for Armageddon. You will still lose.

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    • The Fly

      people are short sighted and not very intelligent.

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    • wilmer

      You will only lose if you do not have enough farmable land, guns, and ammo to survive in the New World. You city slickers are gonna be fighting over the last bag of Funyuns at the local deli after the lights go out while us flyover boys will be enjoying the clean air.

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    • TraderRick

      Because the powers that be have finanaced this bullshit recovery and bull market with money taken from hard working middle class Americans. Instead of fixing things proper 3 years ago TPTB kicked the can down the road. The ponzi is about to be engulfed in a Greece fire,fuck the banksters and all who support them.!

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  28. The_Real_Hmmm

    I still like tech, specifically software and wireless related crap but I’m raising cash and watching the ranges until our congressmen reach an agreement on our presiding cabinet’s ideas. The real wild card here is China. A red joker they are.

    As for materials, the reflexive selling should approach and or exceed logical asset values to the downside as the systemic necessity of liquidity becomes pervasive but I am determining timeframes of recovery and lower bounds of corporate values to evaluate potential rates of return. As always, the stocks that are hardest hit with the highest margin of safety will reap the greatest rewards.

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  29. logicalthought

    Man, this Fly changes his opinion on the market more often than a woman changes her opinion about her dress (yes homo).

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  30. TraderCaddy

    Looks like Grand Central Station.
    Is Grandpa Fly in the picture?

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    • ruggyup

      Look carefully. You may see Gabriel standing on the clock is actually peeing on the traders trying to get out of town.

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  31. bigpun2012

    I honestly feel sorry for anyone who tries to trade the market. May god be with you lads

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  32. TraderCaddy

    My wife told me to take off my Nehru jacket.
    She said I look like a cross between Jawaharlal Nehru and the guy who delivers our UPS packages.
    I told her that I need Fly’s permission.
    So, can I?

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  33. inandout

    I’m really not trying to be a dick just pointing out the obvious I see all over the place more then ever as of late.

    The last few times we were in the 1130-1150 range I hear the majority all over the net(prob on TV too, but I don’t watch that shit, messing up my trading) talk about now is not the time to short wait for a bounce to resistance. Then we get to 1200’s a couple times and most go long instead, then back to 1130-1150 they say the same thing again wait for a bounce, then back to 1200 and few go short like they planned and most go long once again and so on and so forth, rinse and repeat. Not just longs I been seeing lots of shorts doing the same thing just opposite.

    Personally I been trading the way I mentioned for steady income a while back short or long above and below preset figures with futures just my way not pushing it on anyone who has a way that works already for them the majority of the time. So I have no big one trade wins or losses at all. I’m not bragging for I have no extraordinary trades to brag about as of late(if I did I would not mention them anyway when others are losing, but I don’t at this time anyway).

    Imho regardless of your trading style or method ,you have to stick to your plan that you put together before the madness begins rather then get chopped up in markets like this .

    Good luck to all and I still hope the market comes back for the 401 k people and myself included. What I think is we make a new low for the year before any new highs which is nothing special. Either way I will trade in and out futures strictly the way I been doing and will make money every month. No big gains but the little ones add up more then most think. Only way I should lose this way is if I say fuck my plan and try to start guessing shit again and taking more risk(my preferred and more exciting way of trading) but this year has not been the time for that shit , well not for me at least.

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  34. shipwrecked&alone

    lets talk about oatmeal again.

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  35. SAC Monkey

    Before we jump out windows remember we were at this level just nine days ago.

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  36. big snacks

    fly you say

    ” Any rallies should be sold and cash should always be heavy.”

    but we just had ANOTHER rally and you bought more stocks..

    is this a “do what i say not what i do moment?”

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    • The Fly

      I am 30% cash. In my book, that is “heavy.”

      Note: I didn’t buy into strength. I bought while the market sold off. It just sold off some more.

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  37. Colonel von Ryan

    I like the video, good music. It could very well come true, if it hasn’t already. Quite an unpleasant thought but one that should be considered going forward…

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  38. Dr Funk

    Would love to break out in triumph in Defeat of the Clam!!! I actually respect him more. He did what he could and moved on.

    BB has telegraphed twice that fiscal policy needed to incite further recovery. Not much of a surprise that qe would be dead.

    We’ve been chanting he is out of bullets. He really is out of bullets, but have to respect the eventual ‘acquiescing’

    Added to VXX
    Doubled down EPV

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  39. LD

    Like your music selection today.

    Just a thought… My grandparents who lived through the depression and my uncles and aunts of that generation were the finest most generous people I’ve ever known. I think the hard times helped make them like that.

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  40. alf44

    Today I “lunched” on a delicious “Clam Sandwich on Rye” with Havarti Cheese and a pickle !

    It was so delicious … I think I’ll have another tomorrow !

    Excuse me !

    Do you have any Grey Poupon ?

    .

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    • alf44

      test post…

      🙂 – 😆

      😀 – 😳

      🙁 – 😥

      😮 – 👿

      😯 – 😈

      😕 – 🙄

      8) – ❗

      😡 – ❓

      😛 – 💡

      😐 – ➡

      😉 – :mrgreen:

      .

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  41. Marc David

    This market will SOAR when the Fly quits drinking water and switches to Jesus Juice (a.k.a. wine). Till then.. I see no upside.

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  42. A Da Guia

    Banks don’t lend because unfortunately not that many people qualify. Just because LT interest rates go down (and mortgage rates, too), that does not necessarily improve the general creditworthiness of most citizens (some cannot qualify for a new refinanced mortgage). Also, the spread between the 30 year T-Bill and the 30 year mortgage rates has increased, so it’s not even a certainty that a lower LT interest will necessarily lead to an accompanying lower LT mortgage rate (sure, the mortgage rates will go down, but not that much).

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    • Clamalicious

      Credit is a sideline excuse for the pink elephant in the room. WE taxpayers bailed the banks out. Now they turn us down for our own money. This issue is a huge problem in moving forward and trying to get innovation and motivation back into this county.

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  43. Hugh Hendry

    This is my time bitches. Today I flick cigar ashes in the face of champagne socialists, unload howitzer rounds into inflationtards (NO gint) and tap dance on the face of those who think treasuries are overvalued.

    We will see 1.5% on the 10 year bond before this is over and mark my words, people will be “doing the Hugh” in the streets of Paris.

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  44. superpositron

    Long UUP into the sunset. Yeehaw!

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  45. carsony

    House of gold enjoy
    Check out this video on YouTube:
    http://www.youtube.com/watch?v=0mFE_S5t7mU&feature=youtube_gdata_player

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  46. SkyTrader

    Nope today was NOT good! Ah well.

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  47. MyFriendFate

    It just occurred to me there are never any fat people in old videos. And they all dress nice.

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  48. Vegas Trader II

    & I thought I was green..

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  49. TraderCaddy

    Not sure why this story hasn’t made the iBC News Wires,CNN,Fox, etc.
    Here is the headline:
    Lesbian Steals Hearse With a Stiff Inside and Heads Toward Beaver
    And here is the story:
    http://iowntheworld.com/blog/?p=95520

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  50. ruggyup

    Attention Narrow Minded Touchholes All – Redskins will scalp them that Cowboys on Sunday.

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  51. ruggyup

    Attention Narrow Minded Touchholes All – Redskins will scalp them thar Cowboys on Sunday.

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  52. Cascadian

    Banks aren’t lending because the financial ratios have been jacked, their assets are impaired, so they are scared. You need a 700+ credit score and they will make you submit reams of documentation, then in 10 days ask for more; and then more a month later.

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  53. 4fl3x

    It’s hard to believe you are not heavily short right now.

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  54. jose mann

    if you have to trade, use the 30 minute chart, the daily chart has become useless …

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  55. Cut taxes, Cut spending
    Cut taxes, Cut spending

    The White House is going to announce a big Fannie and Freddie refinance plan soon.

    As soon as the shorts are out in full like over this weekend.

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  56. The Fly

    BEARSHITTERS

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  57. TraderRenn

    The “twist” isn’t as twisted as traders feel right now. Where will money chase returns?

    Can’t see investing in the EU or China, without currency debasement – gold and commodities don’t look as shiny, and treasuries can’t beat inflation – ad infinitum.

    Corp. debt and US equities are still the sexiest horses in the glue factory.

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  58. razorsedge

    sorry renn wasnt a reply 2 u, new post.

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  59. freefall

    HAHAHAHA I told you and you ban me… Are you ever right Fly? Or are you really just in your moms basement trading on CBC’s paper sytem, pretending to live the life of a real trader.. no seriously be honest…

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    • razorsedge

      what r ur trades 4 tomarrow? u got an inside track? share?

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      • freefall

        I haven’t sold any of my shorts… 60% short 40% cash… if it bounces up it might be a good time to get in, I’m not sure i would chase it at this point though…your call… I will hold my shorts (no pun) over the weekend…Already decided based on tuesdays action…

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  60. razorsedge

    been cash fer awhile, im golden now, …gld

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  61. Mr. President

    Le Fly, would it be unreasonable to suggest that you, at this moment, have your balls splayed out on the counter, on a cutting board, while you are speed-chopping carrots?

    You are quite long. And that looks quite bad.

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  62. Alden

    this site is really great i will bookmark it to come back

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