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Dollar Bears Throw In The Towel, Dip Buyers Arrive Like Locusts
Looks as if the dollar bears and bond bears finally threw in the towel after suffering from horrific losses, but the dip buying mo-mo monkeys arrived en masse like a swarm of locusts, hoping to capitalize on another huge run in equities.
As usual, a 5% correction in stocks sent the 10-yr. yield in a freefall down to 3.5%, unleashing Animal Spirits once again.
Basically, you saw maniacal bottom fishing in the usual suspects: FCX, X, GOOG, AAPL, PCLN, etc.
It was almost like Wall St. was overcome by a swarm of locusts:
Meanwhile, the dollar bears were decimated. Caught flat-footed, unable to negotiate the most fantastic currency rise in history.
Jim "This Is It" Sinclair had to trade in his 2009 Lincoln for a used 1984 Volvo DL station wagon.
Robert Prechter will now be able to trade his 1986 Chevy Malibu for a new 2010 Lexus 760.
Peter Schiff has resorted to hitch hiking, as he must have been wiped out completely after his anti-dollar and foreign stock portfolio was decimated at the same time he's trying to finance a campaign.
Gloom and Doomer "I told you so's" like Nouriel Roubini and David Rosenberg are now luxuriating in a fine resort somewhere, knee deep in booze and hookers.
Its all part of the casino, winners and losers, fantastic riches made, and huge fortunes lost in a matter of months.
Not too many maniacal short squeezes today, other than this one:
Now its a waiting game to see how low bond yields go, which countries default, and whether or not "Quant Sleaze 2.0" will be lined up to bail everybody out.
Everybody is waiting....
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I ain't buying this shit. WFMI is moving INVERSELY to the DJ. WTF?! Gold is staying in a holding pattern. BITCHES!!! See?! It is easy to see the future now. All you have to do is watch gold.
Who did not see the Euro crisis coming? Everything is too obvious! Goldman Sachs lied and perped fraud?!?! GASP! No shit!!! Why the scare tactics? Maybe because inflation is sooooo big, and will only get bigger if QE DOS is allowed. Either way, we are either going into a) Hyperinflation b) Hyperdeflation c) Both. The US is ON THE VERGE OF COLLAPSE! "Look, Europe is having problems. Look over there!" This parlor trick will not work for long! THEY WILL BE BAILED OUT! If the IMF does not print, what then? The oligarchs want their stocks to collapse? Do they hold that much gold? Is the LBMA completely empty? Is Fort Knox completely empty? The people running the governments/corperations/markets are bat shit crazy and they are morons!
Beware, and get ready. The 'Ish is about to hit!!!!!
I'm long on this:
http://weblogs.cltv.com/entertainment/tv/metromix/grilled_steak.jpg
At least I can enjoy losing my money. Fucking assholes.
Just waiting to reload
we are trained bears now
I hear ya, but I've still got my money on the guy with 5000+ nuclear weapons in his back pocket.
Russia?
Nuclear weapons aren't a currency regime and that's not a winnable war.
Who gives a shit about anything if we start lobbing these things at each other? If you told me that was coming, I'd trade everything I owned to be in South America with my kids and the shirt on my back.
Nope... Bankfine.
And at the rate GS is buying soveriegn CDS's I calculate the nukes are worth about a billion dollars a Kiloton...
Mr Lennon and ZerOhead, please consider yourselves officially invited to our little drink thing that GordonG, Chumba and I are working on if gold reaches $50k.
Disclaimer: the party is on only if society remains stable enough.
I am there. And if society does collapse, I can make some decent beers for us.
The people running the governments/corporations/markets are bat shit crazy and they are morons!
AH HAHAHAHA!!! LMAO! That's the funniest thing I've read all day. Nice.
I'm giving you 5 stars Ms. Robot.
Administered via punch in the nose?
I can see dead fin(pe)pole !
The starbucks induced sugar kicked in, 90 min break was good and the plunge team at it again, miraculous save at the end of the day. There are plenty of small cap val worth getting out there, but there is no, way I'll fish in till the "defaultous" is over. And there is just no f. way it is over.
O- team, plunge police f. yeah!
I was busy adding to my solar positions at the close:
I consider these selloffs in solars a gift, so every time the big hedgies and Goldman hammer them, I add to my positions.
PEACE!
Someone needs to throw a towel over those solars.
Ann Taylor is gonna lead us out of this here double dip recession.
I know how keen you are on the solars Leo, and I know there are a lot of strong feelings about gold and gold stocks around here, but you really might want to take a look at the juniors, particularly trading on the Canadian market (or use GDXJ as a proxy). They're healthier than the solars right now.
Leo, be careful......solar cannot yet sustain itself without subsidies...and the money for subsidies are over...or will soon be.
You may smile if QE 2.0 is unleashed...but your game is not for the faint of heart.
Does SI stand for Solar Illustrated?
I guess I don't understand why you're fucking around with something that's a derivative of energy prices. To me, solars are like oil sands, or ethanol was before it imploded.
I will say, if we get a bad hurricane season this year - and damn if we aren't due - you are probably gonna be rich enough to induce all 7 of those girls to oil up and make a Leo Sandwich.
he's still buying shit long-- proves he doesn't know a goddamn thing.
We will know in the fullness of time....
Meaning, right now the only things that work in my book is buying vol at lows. Gold meza mez, short- your hairs only, longs a blink of an eye, forex- for now the dollar, bonds all over. 10k is my Rubicon.
Sorry Leo, but that solar sector hands down is the absolute worst sector of all.
Reminds me of Ethanol stocks, they will just grind down to Chapter 11, except TSL and FSLR which will probably get bought out by a major oil company.
You're obviously in cahoots with "Big Hedgie" to bring down the virtuous captains of the solar industry.
I just am curious how Leo "adds" to his solar positions when he never sells. Dude must have a printing press to rival Bernanke's to keep "adding" on dips. He's added on so many dips, he must be adding in 1/4% increments cuz otherwise he'd be about 3000% invested by now.
Hey, man, this is the internet. We all have unlimited bankrolls.
In that case, I "added" to my collection of Bentleys on the dip.
Damn, that feels good!
Here's the latest addition to my fantasy stable. Fictitious paper profits, fictitious paper Bentley. :>)
I will take a Speed 8. Most beautiful race car ever built.
Sorry Robo, solar ain't ethanol, and I am not an idiot. If solars are just junk, why are some of the best hedge funds in the world accumulating them? I maintain my view that this is the next big bubble. If I am wrong, I will take my losses, but if I am right, I will cash in big time. I like other sectors/stocks too, but my core long-term positions remain in the Chinese solar sector.
Disclosure: I only add to my positions when a) I have cash available and b) when the my positions get hit 30% or more. These are long-term holds, so I do not care if they get whacked hard.
Dude, Chinese Solars are like JoJo's!
Chug-a-lug!
Really, if someone had a lot of resources, Like Bill Gates for example, that is, has a lot of USD hanging around with nothing to do, I would invest to the point of showing some real breakthroughs in solar.
I think with enough capital momentum we could increase the efficiencies of silicon based solar (PV) panels to 80%. This would be huge, and would change our lives.
A major challenge in using energy is in its inherent costs (losses) in distribution. Successful distribution requires a concentration of energy or a way to move it very cheaply. Gasoline is really just concentrated sunlight. Its advantage is in its energy density. That is, we do not lose a lot of it in its distribution. However, this is relatively rear in nature (entropy), due in part to theoretical limits on energy conversion.
Our AC distribution grid has losses (admitted to) of around 7.2%. But I feel that the losses are more in the range of 15% due to the age of the system. Also, when looking at generating electricity from coal, lets say, we have overall losses, from the energy stored in the coal, of about 40% (steam turbine to generator efficiency on the high end to about 60%). So we lose energy to transport energy.
Solar is delivered free, when there are no clouds, and if you track the sun you potentially can convert as long as the sun is out.
----------
The next challenge is in how we use and store energy. The design of our homes and equipment are not targeted at saving energy. If we did design homes to be energy efficient, with breakthroughs in solar, your house would not have to be on the grid. Ever.
From an energy efficiency standpoint, modern human activity so far can only be described at pathetic. If our race depended upon a symbiotic relationship with nature to manage energy for survival, we would all be dead. The way we squander energy and resources is really an afront to nature.
Our capacity for waste seems to be unlimited. But, the world we live in is a closed system.
Oil and Coal resources availble to us are finite, have conversion loses, and require transportaion. Sunlight does not, and is free.
Mark Beck
nice post mark.
disclaimer: no long no solar...yet.
Would have been nice if the government had invested in this instead of WARS and bullshit, eh?
Bank bailout? WHERE IS THE PRODUCTIVE investment in that!??! It doesn't EXIST.
yes it would have trav. solar's not perfect, then again, what is? at least it may have funded some advances other than bullshit.
o well, guess we'll have wait for superlight:
http://www.hbci.com/~wenonah/new/milewski.htm
if it's not here already, vibrating all around us.
A classic fallacy of modern economic thought, throw enough money at a problem and we are allowed to violate the laws of physics......
Grumbling aside, learning how live on less energy will be very important. Just imagine if the housing bubble resulted in our housing stock being higher efficiency, it is not as if $10,000 wasn't pissed away per house.
I agree that solar will probably play a part as our civ finally starts pushing over the downslope of peak oil. The only problem with it is that it is not capable, at least not near term, of supplying industrial grade power. Think blast furnaces, big mills, plants etc. They need high voltage, highly concentrated, consistent power. Thats just not solar. Solar can take the pressure off by supplying some homes though.
Silicon is a finite resource as well. In sufficient quality to make PV wafers for a niche play, it already seems to be is in short supply, and environmentally harsh to synthesize. Perhaps the silica spewed from volcano what's-it's-nuts in iceland could be captured for this purpose?
Maybe if thin film, or ribbon type get going cheaply, there is chance? Thoughts?
Hell, 25% efficiency would be a game-changer.
Our capacity for waste seems to be unlimited.
brilliant statement MB.
tried solar in the 70's was a big bat shit† like friends, never there when you need them.
Trombe wall - Wikipedia, the free encyclopedia
WFMI is moving INVERSELY to the DJ.
don't get me started with my conspiracy theory with grocery shopping at the very heart of dumbing down america. they never have enough staff to check you out. so they want you to wait and look at all the fat people's food choices and thinking you will go buy more of total shit. plus the magazines dumb down everyone, because they truly think that is the only choice for news. so called beautiful people fucking up, we are really interested in that? yep, grocery shopping is the root of stupidness in america, the whole format. i hate grocery shopping, hate it†
100 shares at a time? How many drachmas are you talking about? Peace!
So, wait a minute Leo. You are playing your solars as a bubble? You're piling in now on the very ground floor, planning to watch this bubble swell and then bail when it's fully inflated in like, I don't know 10 years, 5? Is that the play? Just curious.
You're right, the sheer number of solar companies and companies that supply parts from inverters to energy cells is just to overcrowed.
It's like the 40's where you had hundreds of car builders. In the 50's that number was down to about 1/7. Some for dotcom era.
I'm not into lucky picks myself these last 2 weeks... I'm down 38% on my portfolio. Financials, Shipping, oil, telecom. It's just a crappy time right now...
Crikey, I hope you make a comeback dude best of luck to you. I can't handle that type of volatility, I gave back (after cleaning up pretty good 2006-2008) about 10% of my chips last year, and it pissed me off. Have since recouped a bit of that 10%, but limited risk for me from now on.
Down we go...weeeeeeeee
Locuuusts!
Gold at $1,175 @ USD 84.097 and YOU are taking shots at Jim Sinclair???
Stick to what you are good at Robo, posting chick pictures.
taraxias, you too are hereby invited to the drink party that GG, Chumba and I have sort of planned when gold reaches $50k.
If stable society permits...
Gold making all time highs in euros, pounds, yen, swiss francs and RT wants to bash Jim Sinclair. You would think people around here would understand the difference between profit and loss.
Robo, here's why the malls are filling up and those retailers have been a screaming buy.
" 30,000 homeowners per month are able to pay the mortgage, but choose not to " !!
Let's call it a strategic default buying festival.
www.doctorhousingbubble.com
Nice call on the f1 grid girls. ;)
Good God, What a gamut of reactions to a ho hum distribution phase bringing on a moderate correction.
I dont feel compelled to swarm in and bottom fish the solars or aapl since they will be much cheaper in a few weeks or months anyway.
Nor will I grab my sack of gold coins and a 30/30 and run for the hills, awaiting the collaspe of the western world.
The stocks simply bounced off a support level and didnt really go anywhere, a real swarm of dip buyers and bottom seekers would have been spotted by money flows and the melt up would have been back on, imo.
It will either turn out to be a little baby January dip, or more likely a nice jucicy 10 percent or more correction.
This is just a little warm up correction, followed by the real swarm, weeks from now, that will jack it back up to a blow off top for good measure, then the big correction that still wont be a crash, just a big drop and a mediocre grind into 2011.
Everybody; Robo ,Leo, myself, the doomers, even the Harry Wankster, will all have their day and look real smart in the not too distant future.
The trick is to be able to dump your beloved Solar stocks, your aggressive puts, your commodity plays, whatever, when the wildebeests turn on thier hoofs and run for the next big thing.
I think the macro picture will literally do a decade of cycles in maybe 18 months. Just go with the flow. The gold bugs will have thier day, ironically, not when things are all gloomy, but when the economy actually improves, so they could just buy dips until then.
Solars will have a great summer, but they will be among the first things dumped real fast when the big correction comes. Leo will have a lot more money and thats cool because he will certainly have countless irresistible dips this winter to further his long term view.
Im having my day right now, having shorted at the top with a loose stop and have tripled my meagre portfolio while taking great pleasure in the zombie banks tanking. If that 1161 resistance caves, Ill book a ten bagger.
Soon as the melt-up is back on in a few weeks to a couple months or so, I plan on being a Leo incarnate myself when those battered tech specs, the solars start their out sized and easy to see coming run.
But fuck the long term. I take it day by day, and the first sign of trend change, Ill bail first and look for the next flavor of the week. Shameless herd follower, thats the ticket, folks, one months brilliant play gets tossed on the heap the next.
is the term best hedge fund an oxymoron?
leo has a point. continued long term rise in oil prices and electricity prices are here to stay. so why people bash him he has a big point.
you really think people won't be talking wind farms and solar if oil crosses 100 and we actually get some job creation again!!!!?????????
i also like ENER
Solar will go the way of ethenol. Our troops are protecting the drillers in Iraq, with operations located next to or inside Camp Ramadi, now we know the major massive bases are located near the oil fields for a reason.
Do not worry about sovereign defaults. Debt can always be paid back in newly printed money.
Trade the Euro for US Dollars... ? ? ?
Some Ding - Bats see the US Dollar as the
Best looking horse in the Glue Factory ...
squeeze the trigger.... http://www.youtube.com/watch?v=yWi2hl8hFHg
where is harry ?
not a peep from him.