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
23,026 Blog Posts

Bears on Vacation

Following a glorious week of splendor, “The Fly” had his balls busted to the tune of 3.1% today, thanks to a sharp decline in FTK. However, I did catch 10,000 shares long, near the lows of the day. Also, late in the day, FXP knifed lower. The ridiculous part of the FXP decline is that it shouldn’t have traded down. CHL and LFC make up the majority of FXP‘s bear bets, and they were down.

Will some-fucking-body explain this Chinese fuckery?

All day, I covered numerous shorts. They were all egregiously profitable and big wins for “Senor Tropicana.” However, my cash position was very low (less than 1%); therefore, I felt like bulking up in the event of a classic bounce—following a sharp decline.

AAPL, RIMM and other big tech charged higher, as retards manned trading turrets.

In short, I have little interest in making big directional bets. Instead, I will trade here, invest there, sort of bouncing around like a loose cannon ball—ready to explode. Without a doubt, the economy will continue to slow and many banks will be closed.

Shockingly, the leverage in the system is at all-time highs, following the “credit crisis” hitting the front pages. My guess, all of our brilliant bankers are stuck with their bullshit leveraged bets and are afraid to sell—which may lead to a domino effect—leading to massive write-downs.

In my opinion, all of the banks will report disappointing numbers and will have a very difficult time raising money in the future. While it’s true, the banks have raised an enormous amount of coin, over the last 6 months. It’s also true, that is their detriment now, as the main underlying asset behind their paper depreciates at an alarming rate.

However, I am waiting for a bounce in the financials, before reentering short. At the present, my only short position is FED and a little LEH.

Aside from the banks, I have POT short and a myriad of 200% inverse ETF’s.

For now, my top pick has to be FXP, due to its fuckery.

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Don’t Get Squeezed

The people who pull the levers on this market are sick bastards. Half the time, I feel like throwing soup at my monitor, due to all the fuckery and asshattery that takes place—day in and day out.

We all know the banks blow and should trade lower. However, consider the level of fuckery that these “lever pullers” are on, then trade on it.

Following a dreadful week, often times, the market bounces back. All of the brokerage stocks are at very cheap levels, barring new bad news. The trade is crowded, assholes. If I were you, thank the Lord I am not, I’d take profits on my brokerage shorts and focus on small thrift banks, like FED.

LEH can easily trade up to $41-43, on a squeeze. Don’t be that guy.

In general, the market may tick higher this week. However, I anticipate prices will be 10% lower, by Labor Day.

My focus will be to buy energy stocks on dips, and sell short banks/brokers/China into strength.

Also, my dice roll is on ethanol. My favorite picks in the sector are VSE and AVR.

Bottom line: Go eat a fucking sandwich.

UPDATE: Maria is a stupid bitch.


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Fly Buys: PCZ, FTK

I bought 1,000 PCZ @ $57.85 and 5,000 FTK @ $16.79.

Disclaimer: If you buy the above stocks because of this post, rabid squirrels will bite your nose off. And, you may lose money.

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Alternative Alternative Energy Stocks are Running

The primary alternative energy stocks, namely solar, are being “deballed” today, with comparable fury of 20,000 IT geeks, mad at Yahoo hosting.

In its place, bullshit alternative energy stocks are running. They are stocks of the lowest order. Loosers [sic], if I may be so bold.

This, as you know, is another “tell” that this market is fucked, like a gay pig or dog in Texas.

The list includes:


Bottom line: We are close to the end of civilization, as we know it.

On that future news, “The Fly” is peppering his trader/servant with ice cubes, as punishment for accepting large FTK buy orders. Taking a step back, the stock is a good value down here. I’d rather be buried alive, than book a loss on it today.

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Fly Buy: MER, LEH

I covered my MER short, buying 14,000 @ $43.25. I covered some of my LEH short, buying 5,000 @ $36.

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At Least China is Dumping Out

Look very closely at the shares of CHL and LFC, for they are about to die a terrible death. Seriously, CHL is fucked, due to new government regulations forcing them into the slow growing land line business.

With regards to LFC, it is a ticking hydrogen bomb. They have way too much exposure to the Chinese stock market, which has been blown out—over the last quarter. With that being said, FXP is poised to run. Run like the Hamburglar escaping the grips of McDonald’s security apparatus.

Aside from sinking countries, “The Fly” is enjoying large percentage gains in QTWW and LEI. Quite honestly, I have zero edge on these stocks. They’re just running.

The funny shit is, my “edge” on FTK was an ax to my head, while my lack of insight into both QTWW and LEI led to bountiful gains. Sometimes the market makes no sense. If it did, all of you E-Trade morons, executing trades in Hong Kong, would be rich. But you’re not. You’re just reading the coherent rantings of a maniacal genius.

After looking at UBS and the general tone of things, I’ve decided to hold back on any buying, with the exception of obligatory averaging down in FTK. Instead, I will look to borrow more shares of FED and sell more POT.

Finally, on this dip, PCZ is good for a bounce.

NOTE: With ag getting killed, ethanol stocks may bounce too, providing corn trades lower.

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Fly Buy: FTK

I bought 10,000 FTK @ $16.25.

Disclaimer: If you buy FTK because of this post, you will never learn lessons. And, you may lose money.

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Dealing with a Blow Up

I was going to rant about my Memorial Day experiences with asshole picture taking tourists. However, as you already know, I am the recipient of a “homo-hammer of death” this morning, thanks to the inadequacy of FTK.

Nothing in the world beats coming to work, hung over, seeing a top 10 position blown the fuck up.

Needless to say, I have not made a decision, whether to cut my losses, or average down. My knee-jerk reaction would be to sell it and get done with it. However, it is probably good for a moderate bounce here.

Early this morning, I covered my LEH short, on the BAC downgrade. Killing LEH is too mainstream now. I’ll revisit the name at higher prices.

Also, due to the bastards at FTK, I took profits in a variety of stocks/etf’s, such as SKF, NOV, short MER, short DSL, short FHN and short WM. I will keep my FED short, due to its egregiously high valuation.

With oil coming down, I suspect the bulls will attempt to hold these levels and kill a few bears.

For now, I will reduce my short exposure, raise cash, and figure out where to go long.


NOTE: One of my lotto tickets (LEI) hit pay dirt.

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