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
23,471 Blog Posts

Indeud

Futures are sharply higher based upon a variety of factors, namely retail sales. But Europe was trading up before our retail sales, so it’s worth noting risk appetite is alive and well. To reiterate the point from my previous post, stocks burdened by heavy short positions will benefit the most in a market like this. There are two reasons why this is true.

1. Short sellers provide liquidity and a bid in stocks due to covering.

2. When short sellers and natural buyers converge on a stock at the same time the results can be explosive, sending a stock up much more than other “non-shorted” stocks.

However, one must understand there is a reason why certain companies are heavily shorted. More often than not, short sellers have done their homework and will end up being correct on stocks they bet against. Case in point: Chinese burrito stocks. I tend to look at most stocks, especially heavily shorted ones, as short term trades. If I can make 10-20%, in a short period of time, on a shorted stock, I am more than obliged to take profits. For the love of rabid dogs, I am eager.

Last week I re-purchased RS and FORM, two old positions of mine. It appears RS guided up this morning, always a good thing. Plus, another one of my positions, JWN, caught an upgrade this morning. With Dow futures +80, I find myself 110% long into a decent rally. I need to make some headway here, after underperforming the rest of you cow-fuckers for the past month. So I will make my coin here and outstrip the rest. The next set of moves will be to lighten up on my longs and prepare for a bastard of a summer.

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75 comments

  1. xxxHuggieBearxxx
    xxxHuggieBearxxx

    I think the market has a decent chance of running up all through May, what with the weakness happening early this year and FB craziness in May. Not to mention that Obama needs it to do so…

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  2. Cascadian

    Picture of Sherman? Trying to piss off the southerners?

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    • The Fly

      Sherman was a great man, much greater than Lee.

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      • JR

        sherman was a nor’ern savage; lee wud a gentleman.

        *spits tabacca*

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        • The Fly

          Sherman took the war to the southern people, rightfully so.

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          • Peaches

            the south was trying to fight a war whose bloodshed would occur far from the plantation lifestyle they were trying to maintain at the expense of slaves and sharecroppers. Sherman taught them war is hell. Great post btw I wish my college classes were as fulfilling as my time at this site

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  3. Hammer

    Can I ask why you declare some trades but not others? I don’t recall seeing that you bought RS or FORM last week. Thanks

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    • The Fly

      I bought them at the very end of the day and forgot. I did, however, post them in PPT.

      See, timestamped:

      You wrote: 4/12/2012
      3:54 PM
      @ $53.22
      Edit | Delete
      “bot $RS”

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    • 4fl3x

      It’s actually better this way, Master Fly’s time machine has been off by ~3 days for the past 2 years.

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  4. drummerboy

    dmnd doing the red light,green light dance today,damn puts outstripping the calls,the bears are laughing on it. chk just put in a fiddy-2 wk low. worth looking at. exk doin the same dance as dmnd.

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  5. The Fly

    There is nothing “indeud” about this tape.

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  6. Booyah

    Poof, your BS rally is gone.

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  7. xxxHuggieBearxxx
    xxxHuggieBearxxx

    This is both disgusting and devastating.

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  8. President Romney
    President Romney

    It never fails. As soon as someone posts “LOOK AT COMPANY XXX GO!!!” or “DAMN MARKET SUCKS”. It does the exact opposite. One could trade off of message board comments.

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  9. Yabollox

    The divergence between Dow and Nas is striking today. My steady-Eddie accounts are ripping while my speculative account is getting killed.

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  10. riggedgame

    Q: Why is debt of all types such a global problem?

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    The solution: Immediately cancel ALL debt globally, mandate a 35 hour work week, require anyone who receives a government check to work 35 hours a week GRATIS,
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  11. astrologer

    http://realbusinessresults.com/marketastrologer/wp-content/uploads/2012/04/SP-PlutoMars13April2012.jpg

    Close above 1368 is expected, but SPX has got to hold 1358 to remain bullish from Pluto Retrograde. End of Mecury retrograde and early Mars Direct on April 14th is shaking things up today. Mars remains retrograde for another week. Pluto remains retrograde for 5 months.

    The Sun in opposition to Saturn on April 15,
    (historical correlation of 73% to a primary cycle low or high within 11 trading days.)
    Mars direct has a 75% correlation to the same, within 11 days with majority occurring in 7 days.

    “it will most likely coincide with a very strong move –perhaps 10% or more – in the direction of the new or old primary cycle trend, and into the time when Venus turns retrograde on May 15.”

    For now that direction is likely higher, but would see a cycle inversion if 1358 pluto retrograde low fails, then would make a bear flag and go lower.

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  12. Trading_Nymph

    I was really surprised at the open today. All seemed very silly with Oil going to move down hard and Spanish Bonds up. Jim C on CNBC talking about buying CAT broke my heart. Anyway, looks like that evil AAPL is finally rolling and my long delayed blood bath may start..unless some stupid central bank messes it up, imho IMF promises of money is my biggest worry, so far China, Japan, Brazil, USA aren’t coming forth to flood IMF cash yet..but G20 in this weekend.FWIW, the Burn’s Civil War doc was great..

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  13. pitbull

    Fed’s new secret program :Buy euro securitys/assets debt ! …………….Pain in Spain: Why Everyone’s Freaking Out About Europe…Again
    default or fed restructure ? http://finance.yahoo.com/blogs/daily-ticker/pain-spain-why-everyone-freaking-europe-again-144148810.html

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  14. razorsedge

    the pain in spain is mainly on the plain.

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  15. StocksRider

    The irony of conflicting divergences – nasdaq lagging, transports leading. Choppiness should be with us for another day or so at most.

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    Pay no mind to the drool from Louie Farrakhan that we will all soon kill our leaders.

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    • drummerboy

      good,and when were done with the leaders,we’ll go after psuedo racist leaders and louie will be at the top of the list along with his race baiter buddies,al,jessie and the rev wrong fellowship, c.o.g.i.c.

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    What does he mean when he uses the term “Chinese Burrito Stock”?

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