"Bears make money, pigs make money, bulls get slaughtered." [more]
This market wants to drop. After a fun open, bulls tried to save the day with brazen buying all afternoon. However, faced with the possibility of crushing losses holding through this catastrophic weekend, the bulls turned chicken and dumped 200 dow points in the closing 10 minutes. This is a bear market, the only people who buy these rallies are day traders and suckers (often times one and the same.) There are no values when stocks are consistently getting cheaper. The only two ways to play this market: cash and go short and hold short. I'm taking the later approach. [more]
The massive deleveraging continues--The Deflation has arrived. Short stocks. Short bonds. Short real estate. Short foreign. Short oil. Short gold. Nothing is safe here expect King Dollar. We appear to have a crash on deck today (futures minus 400 and falling, Yen is going parabolic (which = stock market crash there (-7% today) and here). Gold continues to sharply fall lower as it's key rival the Dollar continues its rapid ascent. Poor currencies like C$ have lost 30% of their value since this summer! Get out the way folks, you don't want to be dip-buying anything here. It's not too late to short the hole tomorrow, but don't risk much of your money, as the mouth-breathing equity buyers can be expected to stage at least one lame duck rally before we go whizzing into the 7,000's. [more]
Time to throw in the towel goldbugs. The dollar rally continues unabated. The dollar index broke the downtrend at 73, it broke the "firewall" at 75, and now it has blasted through the strong resistance at 80. The dollar is heading up up and away... my screen shows the Euro down another three full cents tonight to 1.277ish. Gold trades inverse to the dollar, and the dollar's monumental rally continues to increase in speed and power. Poor defenseless currencies such as the "Loonie" and "Kiwi" were seen running home to momma for a good hug and cry after losing 30% of their value in mere weeks versus the King of Dollars, the U$D! Time to throw in the towel gold bugs, the dollar train is not worth jumping in front of... don't commit investing suicide standing in this train wreck. [more]
I'm buying 17.5 strike NOV call options for Texas Instruments. earnings expectations are in the dumps, analysts expect at best a meet on 44 cent target, and expect big guide down. Expectations are in the dumps, any sort of good news will pop the stock. With a P/E of <9, tons of cash, no debt, and a solid dividend, this company is way too cheap. Any sort of good news will launch the stock. Implied volatility is also low on TXN. the 17.5 are in the money by 30 cents calls and are going for $1.35 a pop, while the $20 strike Nov calls are going for 45 cents. Should be a triple on the 20's and double or so on the 17.5's if earnings come in well today. [more]
Many of them will lose half their value in the next couple of weeks. Particularly hard-hit will be TWM and DUG. DUG is short oil stocks. Exxon has dropped 25% in the past two days--XOM is more fiscally sound than the US Government, Exxon will be back. Get out of the ultrashorts. Now! Going long is dicey, I am, but only in small bits via calls where I don't mind losing 100% of my position.
America's dumbest public official--a man so stupid that he makes even Herbert Hoover and Bush 43 look like intellectual giants--stuttered his way through an excruitatingly long horrow show on CNBC. Before the tragic interview began, the market was surging more than 100 points higher. By the time the nightmare ended and Hank "I Hate America" Paulson was done speaking, the Dow had dropped 194 points. This dimwitted disaster singled-handedly destroyed 300 dow points. Why is this terrorist--a man so stupid that my cat has both more lives and a higher IQ than him-- allowed to parade around on TV and terrify investors. Paulson is America's greatest enemy--I believe that tarring and feathering is only just solution to our problem. [more]
They passed the bill and your 201k is still going down. By the way you also have several thousand dollars in debt that the governemnt gave from you to Wall Street. Good Job, be proud of your ignorance Bailout supporters.
I have puts on Gold (Via the GLD ETF) and I also am short stock in Goldcorp--I am long Jaguar Mining and Northgate Minerals, however, I am net short gold by a wide margin at present. That being said, Christopher (TMFSinchiruna) has written another interesting article taking the opposite view of mine.
He presents 5 reasons to be buying the shiny metal now. I have no argument with arguments #2, 3, and 4. However, let's take a closer look at arguments #1 and #5. [more]
Thank goodness. Down 5 points today to 27. These poseurs have fooled a lot of people into investing in hype and hope rather than solid big-cap miners like NEM and ABX. GG is a $10 stock once the gold hype dies down. I hate these guys, and at last, the market's coming around. You've never seen share dilution like GG does it.
Disclosure: Short GG.
1.38 euros. We were up at 1.6 recently. The euro continues its long collapse back to parity. To all you commodity bulls who kept saying the bounce is manipulated, well, why isn't it ending yet? Normally a 52 week high is accepted as a valid sign of a trend change, yet everyone keeps hatin' on the dollar. Give it up guys, the bottom is in, and the DX is heading back over 80 with passion. If you insist on remaining long commodities, at least take a hedged position (say long Nat gas or coal and short gold). Gold is overvalued on financial armegeddon BS, while nat gas and coal appear to be cheap or at least not ridiculously overpriced. With an economic depression setting in and the dollar rising, you don't want to be anywhere near commodities (on the long side) without hedging.
DZZ is the CAPS play as you get a doubleshort, which means it goes up quickly as gold sinks. Plus the market is about to crash again, so the S&P will head down as DZZ ascends... [more]
What a sign of the times when today's top 5 stocks are all bankrupt insolvent scheming little financial frauds. I'm not going to feel bad when we crash... people buying these sorts of stocks have earned themselves a lobotomy. If you genuinely believe Ambac or NCC is worth buying here... dude, have I got some bridges on Mars for you!