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
23,451 Blog Posts

Sanity Settles In and Stocks Press Lower

I made a fairly expert series of trades this morning. At the open I saw stocks down 300, but there was an uneasy feeling amongst BEARSHITTERS and I could sense their weakness. I began liquidating my overnight holds after 20 mins of trade and during the unwind — prices improved. I was down 5-10% at the open on them and ended up pretty good. Here were the results.

XAN +4.2%
HUD +1.1%
MAC +2.1%
(ARI -2.4%)
(SABR -1%)
SPR +0.5%
(MIDD -4.5%)

At the same token, I had a double sized position in triple inverse FANG ETF FNGD, which I tripled down in because tera caps just don’t move all that much. Plus the FB and GOOGL earnings were already out. I seriously doubt there is much more upside to these fucking stocks. I also am short gold via DUST from yesterday and I initiated a position in FAZ today — because banks are weak. I normally do not impose my stock ideas here anymore, due to Exodus privileges, but I felt it was important to illuminate you to the fact that stocks are, in fact, rolling over.

There is a very obvious weakness persisting in banks today and I intend to exploit that weakness to my advantage. Aside from bankrupted DO, now trading under DOFSQ (+50% since yesterday), I have one healthcare stock, 15% in FNGD, 5% in DUST, and 5% in FAZ, 5% in REYN — the rest reserved in cash (60%).

I may or may not buy some more towards the end of the session and my rolling over opinions might dissipate into dust, should we stage a rally. But make no mistake, my brain says we retest the lows and more. My heart isn’t in it yet, however.

The Dow is off 350, Nasdaq -60.

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11 comments

  1. og

    Einhorn out with fraud allegations again. TSLA fading the whole pop. Wow.

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  2. cheesefries

    Breaking: Merlin was spotted in the area.

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  3. snoozemr

    you tripled down on a double size portion of 3x inverse FANG ETF?

    At this point it would seem you are making a bet on Apple before earnings? And comparing FNGD to FNGU it looks like these things don’t track worth a shit.

    Seems you’d get better bang with a TQQQ than that crazy shit if that’s the direction you think the market is going.

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    • snoozemr

      Sorry SQQQ

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    • numbersgame

      Effectively he shorting FNG stocks with half his trading account, betting on AAPL and AMZN earnings today.

      Keep in mind that his tradng account is ~20% (if i rememebr) of his investments, and his quant is cash, so really he has 9% short on AAPL/AMZN earnings day announcement.

      While that sounds risky, if you look at the weighting of these stocks in SPY, QQQ, and other ETFs, I’m betting that most investors actaully have a lot more riding on AAPL/AMZN thatn 9%, and this doesn’t even factor in “risign/falling tides.”

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  4. soupbone

    Trailing earnings and inflation control the mean P/E but excursions are whatever they want to be. And, while I’m at it, relative dividend appeal won’t support share prices. Share prices will follow relative earnings always. It is written on the tombstones of many investors.

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  5. purdy

    If sanity really starts to take hold, bonds will go down as well. Anyway, while everyone is watching a budding long set up, I saw a mo short set up and shorted TLT earlier today.

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    • Mr. Cain Thaler

      Eventually you’ll be right, but anyone paying attention right now is probably rolling their 401K out of any equity with less than $100B in market cap and into bonds / money markets.

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  6. Mr. Cain Thaler

    The GOP demanding we remove emergency restrictions in the midst of a pandemic has to be the dumbest thing this party has ever done. In Michigan they’re suing Whitmer; we were the third worst state not even a few weeks ago and our cases haven’t receded at all yet.

    This of course just barely edges out the second dumbest thing the GOP has ever done, which was running trillion dollar deficits in the form of tax cuts at 3.5% unemployment as – with the benefit of hindsight – we were about to contend with a fucking pandemic.

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  7. purdy

    The case for sanity would be stronger if short punishment was more complete ..you still can’t borrow RTH.

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  8. itsgold

    JPOW isn’t done stimulating the economy.

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