What to do?
On one hand, stocks appear to be cheap. On the other, the market is telling us Citigroup Inc. [[C]] , Bank of America Corporation [[BAC]] and [[M]] are going out of business. If that happened, no doubt, the regulators would suspend trading and keep this market closed, until everything got ironed out.
There’s a run on the banks right now and the gov’t has run out of bullets. If the credit agencies downgrade Citi, they are done. If they go under, how can the gov’t save them? They are too fucking big.
Let me tell you, if there is a such thing as The PPT, or some secret agency who manipulates stocks higher, those fuckers need to step in now—right here— and get long egregious amounts of S&P contracts.
We’re on that slippery slope right now. My conundrum is: do I add to my fledgling long positions now or wait until there is blood flooding out of the NYSE?
By the end of trading, I will reduce my hedges to just 5% short, and keep a little [[SDS]] and short Petrohawk Energy Corporation [[HK]] . Furthermore, I will start to nibble, like a small rat inside a coffee can made from sweet corn, on [[ROM]] and [[UYM]] .
Look you, I can easily try to cherry pick an individual stock and try to get lucky and shit; but that’s stupid. Right now, we are convoy trading, up and down. The best way to make money in this tape is through the upside and downside etf’s, providing one has Godly market timing, such as myself.
Eventually, stock picking skills will be needed. We’re just not there yet.
UPDATE: I changed my mind. I’m not buying until we break 8k.
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