This back and forth action can kill traders. There is a lot of noise in the market now, ranging from arresting all short sellers to killing all banking CEO’s. If you’re trading this market, like many of you are, try to be hedged at all times.
Long Banks/Short Tech or Short Oil/Short Banks
You need to examine sectors and how they correlate to one another. Recently, airlines, retailers and automakers have been running, as oil slips. Naturally, many of you think short oil/long airlines is a good trade. However, keep in mind, that is a very levered bet. Should oil bounce, you are double fucked.
The appropriate trade is long airlines/long oil.
In my opinion, the market will keep a tight range, until the annual September-October fuckery, when everyone gets killed.
The current theme is to kill the oil speculators and those who are short banks. The common denominator is that both of those trades have been wrong, for a very long time. It’s almost as if all of the losers banded together and went out for revenge against those who have been banking coin. Egregious and erroneous behavior.
This trade will end, as all trades do.
Now is the time to identify good entry points into energy stocks, like [[CHK]], [[RIG]], [[OXY]] and [[SU]].
And, at the same time, look to sell short some fucking banks—due to the fact that the carnage is far from over.
Just to fuck around and test out iBC’s new proprietary software, I bought some [[AUXL]]. I will explain this software in greater detail at a later time. Just know, it is my brain translated into code.
Top pick: Short [[TCB]]Comments »