After the market closed, the Obama monarch announced they’d allow Janet Yellen to be the next Fed Chief, instead of some crazy eyed democratic operative. As a result, S&P futures are up 4. Under normal conditions, I suppose this would be good news. But if you really wanted good news, the press release would’ve read: Bernanke Agrees to Another Term.
Nonetheless, I am hoping to be able to sell into any rally. I’d like to up cash to 50% and throw on some hedges for the rest. I have no business playing in this cesspool, especially since I know the true depth of it.
Let me show you some of my charts.
US sovereign credit is freezing up, olde sport. From 1 month to 3 year treasuries, yields are blowing out. That’s what you need to watch because the short end of the stick is getting it and that’s not a good thing for liquidity.
The reason why stocks are correct for selling off is because of political instability. Just like you wouldn’t trust owning a Venezuelan oil company due to their government, investors do not trust our banana republic. Even though nothing has changed on paper, everything has changed in the country. Our political system is so corrupt, so dysfunctional, it has disrupted the normal flow of business; and as a result, multiple contraction is taking place.
At the very top of my buy list is YELP, TRLA, YY, and maybe ANGI. These are great names that enjoyed momentum to the upside when times were good. But if times have changed, and the mood decidedly dour, these names and many of the high beta plays are still woefully overvalued. YELP can trade down to 15x sales and still be considered rich. Hell, if they missed numbers, it can go to 10x.
Once this is behind us, stocks will rally, which makes taking on a net short position dangerous. But, odds are, these bozos, predictably, will wait until the very last minute to get it done. As such, stocks should be sold or hedged until then.
NOTE: I reserve the right, as a gentleman investor, to change my mind at any given moment in time.
If you enjoy the content at iBankCoin, please follow us on Twitter
How do they know which rules/laws to follow? There are so many exceptions. On another note, I signed up today at my State’s healthcare exchange website. It was a joke. They take some very basic information, let you open an account, and then tell you to wait until they contact you. Nothing is really ready.
Wait until you see your deductibles and co pays (Bronze,silver,gold and platinum plans) and, not to mention the premiums unless one qualifies for big subsidies.
The law helps those who have preexistings , the working poor, and the lower middle class. The rest of the middle class is screwed again.
The insurance companies apparently can also use your credit score to determine how much one pays. Guess who generally gets hurt by this. What a mess.
They should have paid eHealthInsurance.com to run the whole show.
Have no fear Fly. The Fed will thaw the freeze up. Although she looks frigid Mrs Yellen will keep the fire going
I’d love to get the fire going with her.
“…I’d love to get the fire going with her…”
=====================
WITH GRANDMA???
perv much?
I listened to Howard Stern today. My curiosity is running wild.
I’d make her take a bath first.
“I’d make her take a bath first.”
===============
better that way…i guess.
There’s liquidity. Banks are drowning in it as dark pool growth continues
You are a lost cause.
And you mean???
I think that was fairly explicit.
All banks, Wells Fargo included, are sitting on tremendous pools of liquidity
Read more here: http://www.charlotteobserver.com/2013/10/07/4372719/wells-fargo-exec-dc-fighting-makes.html#.UlSvzlCUT9U#storylink=cpy
All banks, Wells Fargo included, are sitting on tremendous pools of liquidity
I saw a downgrade of WFC this AM but it held up relatively well as did C,BAC,GS.
Might mean something but in a cascading sell off (remains to be seen) they all go down.
More genteelism and circumlocution, please.
One gets the feeling the dems have no clue how fucking pissed half the country is right now. It can only get worse. The media is full of shit saying this is hurting the tea baggers.
Thanks for your insights, better safe than sorry whilst this standoff awaits resolution.
(Reuters) WASHINGTON – The Federal Reserve building, according to a confidential source, will be used strictly for late night Bingo games, starting October 9th…
Yellen the Felon. This shit is Breaking Bad.
The reason that the atom bomb is basically useless as a weapon of war is that it is too powerful and cannot be made less powerful. It is a weapon of genocide and only a complete maniac would ever contemplate using it. (like the Ayatollah.)
Using the debt ceiling as a bargaining chip has the same problem. It is way too powerful a weapon and no-one in their right mind would ever contemplate actually allowing the country to default, even technically. Unfortunately that’s where the tea baggers come in.
Yea you’re right dude. Tea baggers are fuckin insane. Obamo is the adult in the room.
That’s not at all what the tea party is saying.
They’re bluffing, like last year. There will be no default. We saw this movie last December. Same ending.
…They’re bluffing…
================
Yep…
The repubs are bluffing (and Ise been a repub all ma life.)
The libs simply do not understand what is happening. America does not want socialism. The press and the free shit army are outnumbered. Until this fact is understood the situation will remain volatile.
His Majesty King Obamba the First hath declared a State of Fiscal Emergencies, and as a direct result of said proclamation and in accordance with all relevant proclivities, he hath ordained her highness Janet Yellen The 2nd Clam of America.
She is no doubt expected to be a clam of superior determination and order, who will lead America to great new height and lead our portfolios to the promised land.
Calling Yellen “the 2nd clam” puts a whole new spin on that nickname.
And you complained about too much info from tcaddy on the toilet seat thread?
His Majesty Throws Us a Bone
=====================
Yea Fly, but like i said the other day….you have to be REAL careful about that bone thing… http://tinyurl.com/k673ngd
Fly, this is all bullshit. Within 2 weeks… there will be a resolution (likely sooner), the markets will recover, we will focus on earnings and Yellen will be sworn in as the great QE fed head. What’s not to love about buying cheap stocks here?
Are ya feelin’ lucky, punk?
by accident I posted this under an older Fly blog. It deserves attention though.
Disgraceful. Families of soldiers killed in Afganistan are denied death benefits because the government is shutdown.
http://usnews.nbcnews.com/_news/2013/10/08/20873800-senate-elders-denounce-suspension-of-death-benefit-for-families-of-fallen
http://www.youtube.com/watch?v=JvTS9jzQm8U
Matanzas, it’s government ‘working’ that got them killed in the first place.
We’re damned if they do, damned if they don’t.
How do you get a bone from that?
Will be ugly the next few months IMO. New highs mid next year probably. Look to go long for the longer term in April/May 2014. Our government doesn’t deserve this country.
Buy SVXY