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
22,556 Blog Posts

HARD COLLAPSE UNDERWAY

The market was speeding ahead as fast as it could, up until it rolled over a sharp nail. Now we’re deflating and it won’t be long until we stop completely and collapse — unless of course we get some bad news to trade off from and provide us with some more air to keep the dream alive.

Since I entered heavily hedged, I’m actually flat for the session. Normally I’d close out my hedges and hope for the market to turn and I might still do that. In the past, buying all morning dips was a good idea. My sole reservation is that the market was already up too much and now we have some concerns about earnings.

MSFT had been up 5% after posting results and now the stock is down 4%. NOT GOOD.

ON THE OTHER HAND, we are also seeing rotation out of growth and back into risk averse stocks like SJM, MCK, and LMT.

BOTTOM LINE: we knew it was overheated and now we’re being tested. If we are in a true bull market, we will recover. Pick a side and good luck.

More later.

If you enjoy the content at iBankCoin, please follow us on Twitter

Leave a Reply