Irish, Greek and Portuguese gov’t debt spreads are at record highs versus German, up anywhere between 30-50% from October. TLT is tanking, which means the dollar should be tanking, no? Wrong! We are in opposite land, where nothing is what it seems. The dollar is up nearly 1%, as Treasuries tank. Someone has a lot of explainin’ to do.
The market is pulling back, after a fanatical run, led lower by banks and CRE. Scared yet?
Hardly.
My Chinese Lotto stocks are “reverse lottoing,” which is expected. When one endeavors to play inside of an active volcano, such a person should expect to get burned. Easy come, easy go. I was one click from selling out of my HEAT position this morning, but opted for a coffee instead, literally. So, instead of being up 19% on the position, I am up 9.4%. That’s an expensive cup of shit. Furthermore, I kicked out of my PWAV position, just because. And, I bulked up on a little GMXR, which moved nicely higher intra-day. Pretty much all of my positions were down today, with the exception of one particular name: FTK.
Here is my dilemma.
Year to date, FTK is up 45%. More importantly, over the past 3 months, the stock is up 39%, making it the 8th best performer in the oil/gas equipment and services industry, over that time. Typically a good problem, but not now. Because of the big move higher it is now too heavily weighted, for my taste, in my portfolios. Meaning: I have no choice but to sell or opt for a riskier alternative: spend all available cash and maybe leverage, in order to diversify.
I can go about this in a distinguished manner and try to “hedge” again. Or, if my thesis is to be long, going into Turkey Day, I can just buy “fuckloads” of bullshit stocks cheap, then sell them when they are expensive.
I will ponder this problem thoroughly, over a 2 1/2 inch thick rib eye, heavily salted, lightly peppered—later on this evening. Into the bell, the sell off is intensifying, as fucktards get stomped into the funnel. As I close out this poem, I am down 1.1% for the day.
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