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
23,431 Blog Posts

Assuming I’m Wrong Buying Now — Timing Bottoms is For Catamites

Morning lads

I just got done cooking a second breakfast, this time some eggs with a béchamel sauce — with a side order of more prosciutto. Markets have clung to the highs and I made a bunch of purchases this morning, most of which are now lower. But I knew that heading into the market. Timing bottoms is a very hard thing to do, especially when markets dislocate and plunge. If you’re buying into a bad tape, it’s a religious experience. You’ve got to have father in what you’re doing and you can’t second guess yourself, unless your stops get hit.

Now if the market reverses today, it’s true, I’ll both feel and look like a complete jackass. But that’s the price one has to pay when speculating in this tape. Let me remind you once again, 75% of my assets are invested in a quant account that is 100% long. I do not look at it intra-month. It is rebalanced the first of each month.

Back to the present tape.

Breadth is 78%, about the same in tech, and all you fucking catamites can talk about is AMZN. Hello, no one gives a flying fuck about Amazon. We’ve got BIG BLUE in the house, ripping out bullshit third tier cloud companies at 63% premiums.

If the market is going to be fine, it will bounce this week. There are no two ways about it. Either buy now and hold your breath, or stay short, betting on an end of days scenario to play out.

Which do you think is the higher probability play?

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11 comments

  1. acehood

    What does Trump want to happen, and when. Only thing you need to ponder.

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    • Black Swan

      You give the man too much credit. Blotus doesn’t have a plan as such. He just responds to shit on Fox that he consumes during his “executive time”, which is most of his time. Knee jerk responses, attention span of a toddler. It’s a lot simpler than you make out.

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  2. roundwego

    Chop sideways to consoladate loss then crash.

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  3. toddinfl

    Probably not a time to “stay short”, but possibly a time to stay in cash and watch carefully.

    Cash gives a trader and investor a lot of optionality and a clear mind.

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  4. og

    Will NFLX ever bottom? WTF.

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  5. jbandy

    Pretty much every investor I’ve seen is still heavily long and confident this will pass. For that reason, I don’t think its over.

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    • roundwego

      Vix is too low, more fear needed for capitulation.

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    • jbandy

      Yes. And we’ve got a ways to go yet. I think the indices can easily do another 5-10% down.

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    • frog

      Some people didn’t even sell during 2008. Some people sit through even deep Bear markets and never sell til they are retired & need cash.

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  6. s.k.

    Why not throw on a little hedge there Senor?

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  7. jbandy

    Cash is a position too. Sometimes trying to hedge just makes things worse. If you’re worried, raise cash first. You can decide what to short or hedge with once you’re “out of danger” with your net long exposure.

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