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
21,152 Blog Posts

2014 All Over Again

Massive collapse in a variety of “hot sectors” today, mainly in EV or anything green or anything related to Biden. It’s also worth noting these hot sectors are now BRAZEN BULLS, roasting newly minted traders alive. Over in Stocklabs, we do not fall victim to predators and instead hunt. I gathered nearly 100bps in gains today, thru grit and determination, succored and emblazoned by the tools available to me. As a trader, you are only so good as the people around you and the tools you have to trade.

I want to bring up the 2014 narrative again — because it feels familiar. I know it well and if you’ve read me you know I have PTSD from that era. The hot stock of that time was FEYE. Here was the monthly returns for FEYE in 2014.

Misery and one bounce, more misery and one final bounce before nothing again.

Now let’s look at PLUG.

Similar no?

We are not done and of course there will be respites and micro-trading opportunities. It’s worth noting for the first half of 2015, FEYE was off to the races before succumbing once again to evil short sellers.

The moral of the story?

People were correct to sell short FEYE — as it has been a miserable company for the past 7 years, just like people are correct for shorting all of the hot sectors now. This is hard to accept, but it’s for the best. We are cleansing the market of its perfidious cloth and renewing the spirit of real investors who trade real stocks based upon real fundies. It’s not as fun — but then again — another bubble is only a few years away anyhow.

Today’s momo sectors racked with losses.

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