The market was looking for an excuse to rally. When [[BBT]] reaffirmed their 7% dividend, a short squeeze ensued. As you know by now, these rallies are to be sold. BBT is being reckless with capital. With demand for capital at a premium, why waste it via dividend? They can use that money to vulture around, buying quality assets on the cheap.
Something has to be said about managers who constantly focus on share price, instead of the underlying businesses. I mean, what the fuck are these guys smoking?
Time after time, these CEO’s end up looking like jackasses, via their erroneous share buybacks and lofty dividends. When will they realize, this is a fight for survival, not nice charts?
In other news, into this squeeze, I bought a block of [[WB]], as a hedge. If the market continues up, I believe it will print $20. Also, I might buy some [[MIDD]] here. The stock has been brutalized, beyond recognition.
For the most part, I am keeping my long exposure limited to a few stocks, for management purposes. I need to be able to blow out of them quickly, considering my bias is for further market weakness.
At the present, [[FTK]] is my largest position, with [[RIG]] not far behind.
My short positions are numerous, particularly in the regional banking space. Into this rally, I will look to sell more [[EWBC]], [[WTFC]], [[CSE]] and [[PACW]]. And, I may initiate short positions in [[CYN]], [[TCB]], [[SNV]] and [[FTBK]].
Be patient.
NOTE: “The Fly” is now up 50%, year to date.
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