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
21,513 Blog Posts

I’m Outta Here

See you Monday.

NOTE: I just could not let myself leave a “position update” of [[WB]] as the the headline story.

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Position Update: WB

This is the only bank stock, aside from [[AIZ]], that I am holding. There are a slew of rumors running rampant, ranging from buyout to another big write down. My approach to WB is the following:

It’s a “what if I’m wrong” position. It goes against my market thesis; so it is a bit of a lotto play.

In short, being long WB sort of hedges against being short [[LEH]]. Providing my dire scenario turns out to be inaccurate, WB will trade north of $30, one day. If I’m right, I will be selling this sucker, under $10, while making bus loads of doe in [[SKF]].

In other news, celebrating GM’s abysmal car sales numbers (-32%), via buying stocks, is the most ridiculous thing I’ve seen since Michael Jackson kissed that chick on tv.

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Watch Me Roll On Your Face

I’m in this big wheeled monster truck, with spikes and missiles on it, while you’re over there in your bullshit pleather chair from Ikea, looking at charts with your magnifying glass and fucking ruler.

I’m buying [[FXP]], like a drunken stock broker. And, I am selling short the shares of [[VMC]], as if the company was going out of business.

It’s Friday. Relax, drink a few shots of Patron, then short some stocks.

On a side note, [[MS]] keeps chugging higher, alongside a number of queered out banks. The fuckers who are buying bank stocks, must be wearing pink dresses and dislike sports. I can’t figure out why anyone with a modicum of intelligence would buy banks, after they have sprinted 50%.

Look you, of course the banks have bottomed, from where they were. It doesn’t take a Phd in economics to figure that out. However, you have to ask yourself, are they good buys now—after such a big run up?

With regards to [[SKF]]:

That bedeviled inverse ETF is down like 80 bucks in one month, since hitting its egregious high. What, do you think it’s going back to $90? What the fuck are you smoking?

Bottom line: the economy is not in recovery mode. As a matter of fact, it is deteriorating. Upside on SKF is 100 points, with downside of 25. I like those odds.

UPDATE: iBC’s new tabbed blogger has arrived. Welcome Gio, the Hawaii Trader.

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Charts Are for Losers

So many of you losers were in love with [[ELN]], because it had a ‘dreamy’ chart. See where it got you, fuckface?

Making financial decisions based upon charts is equal to marrying a woman solely on her looks. For those of you who have been taken for “half,” you know that’s a bad idea. Sure, she may be nice to look at for awhile. However, eventually, she gets old, turns bitter, then takes you for “half.”

Investigate the companies you are buying, goat lovers.

Personally, I admit taking a “gander” at charts, mainly to view past history. I like to see how a stock reacts to good or bad earnings. This way, I know what to expect.

Every time I buy a stock, I write down the expected return and ‘worst case scenario.” It is important to understand your stress levels and how much risk you can incur, on a single or series of trades.

Enough of that.

Thus far, I’m quite pleased to see the unemployment rate up to 5.7%. Rick Santelli went on quite a tangent this morning, when he exploded and chastised the delusional CNBC panel for trying to paint the pig gold.

Look, a loss of jobs is a loss of jobs. It’s not a little bit good. It’s all bad.

Jobs are the life-line to the economy. Remember, our government has socially engineered us to spend all of our savings, in order to support bridges that go to nowhere. However, their plan gets a little rattled when, all of a sudden, we are without jobs. This will panic them.

Expect to see more stimulus checks, going out to idiots with plasmas on their brain.

The government sending out money to people, so that they can buy shit from [[BBY]], so that BBY can pay the government taxes, is equal to [[MER]] financing the sale of their CDO’s to Lonestar.

I’m just saying.

With my money, I want to buy [[FXP]] here on the dip. Wait for [[CHL]] to roll over, then jump on it. And, I want to sell short [[TCB]]. In my opinion, fair value is around $10, or less.

Oh, I also like short [[VMC]].

NOTE: My [[CLNE]] looks great here.

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Construction in China Slowed for First Time Ever

Fuck the Olympics.

The expansion of the world’s fourth-biggest economy slowed for the fourth straight quarter in the three months through June on weaker U.S. demand. China raised tax rebates for shipments of textiles and garments today and the commerce ministry is pressing for slower yuan gains to protect exporters after the currency’s 6.8 percent advance against the dollar this year.

“Companies are less willing to invest as export growth slumps, credit gets tighter and the economic outlook worsens.”

Read full article.

In other news, Australian insurance giant, Suncorp, is having its head “cannon balled,” thanks to the glorious banking system.

Suncorp-Metway tumbled 14 percent, or A$1.93, to A$11.45 as of 1:35 p.m. in Sydney on the Australian exchange, set for the biggest one-day drop since June 1989.

Challenging Conditions

“Our result for the 2008 financial year has been affected by external factors, including the global credit crunch, volatile equity markets and a succession of severe weather events,” Chief Executive Officer John Mulcahy said in today’s statement.

UPDATE: The Godly folks from iBC are thinking about retaining the quote services of Alpha. Go punch in a quote and check it out. Good or no? Thanks.

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The Cramer Top Is In

Had you listened to Cramer’s bottom call yesterday, you were “ape raped” today.

Listen to me. I know you have a naturally bullish disposition. You want flowers to line your white picket fence and champagne to flow from your garden hose. You want things to go your way, while absurd misfortune strikes your neighbors.

I know. Believe me; I was once like you.

I remember buying stocks into the 2000 meltdown, with reckless abandon. Vividly, I recall losing a personal fortune, all the while Larry Kudlow and Ned Riley were telling me “everything is alright.”

Things aren’t alright. As a matter of fact, things are entirely fucked, stemming from the debanking of America.

Not just the consumer, mind you. The country is broke, like a crackwhore in a prison cell.

This is what I want you to do:

Take out a sheet of paper and write down all the pros and cons of the economy and stock market. Then, take that list and recite it to your wife, since she is much smarter than you and does not think with her anatomy. She will give you cogent advice.

As you know, “The Fly” took off his bank hedges, with precision. He is now net short the banks and a variety of other names, like [[LVS]] and [[VMC]].

My only regret is holding commodity stocks, since they are being “ape raped” too. Nonetheless, I remain steadfast in my belief that I will be right, while everyone who bets against me is wrong, naturally.

Pile on NOTE: Check out Cramer fav [[PH]], part of his group ‘new technology’ plays, around $90.

UPDATE: Mr. Mortgage on the Wamu non-event, which was hyped by CNBC.

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Fly Sell: VMC

I sold short 5,000 [[VMC]] @ $64.10.

Disclaimer: If you sell short VMC because of this post, Cramer will call a “top” on your favorite stock. And, you may lose money.

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