iBankCoin

LARGE CAP DEBACLE

I don’t care about anything but large cap, treasuries and REITs right now. These are real economy cogs, not some fly by night rumor mill buoyed story stock. It’s disheartening to see names like KMB, CPB, WY and BX taken to the woodshed, even though I do not own any but KMB. These stocks are long overdue a correction and the corrections have arrived, fast and furious (extra diesel). I am not suggesting this correction is anything extraordinary. It’s actually quite ordinarly and pedestrian, save the spike in treasuries. However, I am suggesting that you pay close attention to the trends, for they are telling us the market is overheated.

The big divvy payers have led the market higher. It should come as no surprise to see them lead us lower. I am sure there will be people who believe we can still rally, as the large caps get flayed. But this is simple folly, a mistake made by people wearing blued collars and burlap’d pinstriped on top of velcro underpants.

NMR, HCP, VTR, HCN, SNE and MFG are officially in correction mode.

Other dividend payers getting taken to the woodshed include: BAK, HAS, TLK, BIP, BBD, ABV and NGG. PPT members can access this screen here.

I lost 1.5% today, but raised a lot of cash. At the close of trade, I was up 29% for the year and in a 42% cash position.

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12 comments

  1. flicker

    No pussy for a long while.

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  2. OG

    The best part of that movie was probably the song.

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  3. Munch

    You want a correction

    “a correction and the corrections HAVE arrived, fast and …”

    HAVE, yo, HAVE!

    Peasants … decent quality … no moar … You know the drill …

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    • The Fly

      Go eat a bowl of maggots. I don’t edit my posts and pen them inside of 5 mins

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      • Munch

        GFY!

        You either subscribe to quality, or you don’t – but then don’t Phukken pretend – I can’t TOLERATE pretenders, yo!!!!!

        Ciao

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  4. JTU

    I hope there wasn’t a scene in the movie with that music in the background that lasted 15 1/2 minutes!

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  5. Trading_Nymph

    We have recession economy, the Central Banks around the world have just delayed all of it since 2009 with this massive commodity bubble to make people believe we had Global Growth…Nymph’s Day will Come….BTW, Tonight watch for F/X investment of Japanese Funds Data, I bet you will see selling vs buying like last week.

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  6. alphadawgg

    Rotation out of defensive stocks and into cyclicals like financials, materials and tech may be starting to happen, thanks to people getting spooked by the rise in the 10 yr. yield this month.

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    • alphadawgg

      Holding ABC, ADM, AIG, AIZ, AMP, BA, BSX, C, CELG, DTV, GNW, GS, HBAN, HES, JPM, MDT, MET, MPC, MSFT, PNC, RF, TSO, WDC, WLP

      ….24% cash

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