This page has been archived and commenting is disabled.
Why I’m Bailing on Bank of America
We have had a nice run here on (BAC), posting a profit of 20% off our $6.85 buy in just one week. The stock market is now at the top end of a one month range, so I am going to cut back some risk. The big gainers are always the first to go on the chopping block.
We have had a great 130 point rally off of the August 8 capitulation low. The market is getting artificially ramped up to overbought levels by month end window dressing, as portfolio seek to hide the damage caused by the worst month in the equity market in ten years.
Once we get through month end, I don’t see any positive drivers for the market until Q3 corporate earnings releases begin at the end of September, or the FOMC meeting takes place on September 20-21, when some form of QE3 may be announced. An outlier would be a surprisingly good August nonfarm payroll report, to be released on Friday, September 2. This is an outlier that is way out there.
In a perfect world, we’ll catch the next downdraft, take profits on our shorts, double up on our longs, and laugh all the way to the bank. Ah, yes, that ephemeral perfect world. Something tells me that it will be harder than that.
The Justice Department’s effort to block the AT&T and T-Mobile merger is definitely throwing a wet blanket on the market. The 3 cent pop in the Swiss franc this morning is also telling us that another round of “RISK OFF” may be just around the corner.
Finally, I received a blizzard of emails from my Houston readers in the oil patch telling me “great trade” on my recommendation to go short oil yesterday. They should know.
And for good measure, we are one headline away from another tape bomb, the next chapter in the unfolding disaster in Europe.
Add all this up, and it tells me to strap on more downside exposure. Hasta la vista Bank of America. Catch you again on the downswing. Well done Macro Millionaires! You have just added 100 basis points to your 2011 total performance!
For these who wish to participate in Macro Millionaire, my highly innovative and successful trade mentoring program, please email John Thomas directly at madhedgefundtrader@yahoo.com . Please put “Macro Millionaire” in the subject line, as we are getting buried in emails.
To see the data, charts, and graphs that support this research piece, as well as more iconoclastic and out-of-consensus analysis, please visit me at www.madhedgefundtrader.com . There, you will find the conventional wisdom mercilessly flailed and tortured daily, and my last two years of research reports available for free. You can also listen to me on Hedge Fund Radio by clicking on “This Week on Hedge Fund Radio” in the upper right corner of my home page.
- advertisements -
Wholesale Golf Products
Wholesale Clothing
Stuffed Animals
Wholesale Mouse
Wholesale Clothes Rack
Wedding Favors
Wholesale Frisbee
Wholesale Glass
Wholesale USB Products
Wholesale Bag
Giveaway Material
Solar Products
Wholesale Playing Card
Promotional Gifts
Wholesale Glove
Industrial Supplies
Pen Holder
Wholesale Scarf
Wholesale USB Flash Drive
Wholesale Cap
Writing Instrument
Automotive Products
China Suppliers
Wholesale Cap
Wholesale Bag
Promotional Gifts
Promotional Gifts
Fishing Supplies
Wholesale Binoculars
Wholesale USB Flash Drive
Crystal Gifts
Wholesale Playing Card
Wholesale Racks
Wholesale Fan
Wholesale Tableware
Personal Safety Products
Wholesale Magnifier
Wholesale Camera
Wholesale Mirror
Wholesale Tellurion
Wholesale Socks
Giveaway Material
Coin Bank
Wholesale Puzzle
Wholesale Stationery
Get over yourself.
MHFT is the Tommy Flanagan of ZH.
"Finally, I received a blizzard of emails from my Houston readers in the oil patch telling me “great trade” on my recommendation to go short oil yesterday. They should know."
Do they know Crude is up today?
Making an uptick on BAC ( BankAMericaClusterfuckster), is pure luck.
I bought so many puts on this shitbag over the last 12 months, I had to give up. Poor house awaits. When you know that buffy is supposed to be the bank savior, you best step aside. I wish fucktard buffy would bother to call me sometime, with something I could use.
Congrats to the ever brilliant "madhedgefund" (exphasis on mad) on catching the last dead cat bounce on BAC-you got very lucky. Just don't confuse luck with skill. However, those of us who bought puts on BAC, C, MS a couple of months ago, (when BAC was at 11 and C at 40), understand when the long term trend is down (or up) don't try to catch a falling knife!
By the way dear MAD, I still have puts on BAC, C (Nov 2011 strike 9 and Dec strike 30), from rolling my Aug put 13s), so yes, its still got a long way to go down. Countertrend trading is for madman who think they can time the market. As real traders like to say, "the trend is your friend".
Think I'll skip your email advisory and continue to think for myself.
One question: if you've so good at trading, why run a fee-based advisory service?
Answer: Its other people's money at risk.
where the manager is mad and so are his clients
He forgot to remind us how big his swinging dick is, baby.
GENIUS...Pure GENIUS.
A 20% move in the underlying and "clients" pull out 1%?
Where are their yachts? Maybe buried under the emails!
Harry Browne's 1st Law of Investment Advice:
An investment advisor with a perfect record will lose his touch as soon as you start to act on his recommendations.
And for good measure, we are one headline away from another tape bomb, the next chapter in the unfolding disaster in Europe.
he's got that right for sure.
I was going to thank you. I thought the title of the article was "Why I’m Bailing out Bank of America".
My bad.
He got the short gold call and the long BAC right.
Not bad bitchez
MHFT missed the claimed (after the fact) gold collapse (and recovery) as a matter of record below, while still claiming it is going to $2300.
Did you include doubling down on bad TBT buy calls, the sell SPX @ 1123 bad call a day after telling people to "buy at the bottom" and the many other psychotic calls and claims?
Pity the poor fool who joins MHFT in Las Vegas or Singapore for lunch...
http://www.madhedgefundtrader.com/page/2
But if you had common sense, you where already short BAC before the fall and long gold before the rise.
Bailin Bailin hay hay Bailin Bailin hay hay...you'll get the joke if your Irish
Sorry, not irish. fuck you.
A yahoo email address....very professional.
+1
Good One! Good thing I wasn't drinking coffee!
He's getting buried in emails! I'd better rush to join and hope I can be allowed to give him money before this once-in-a-lifetime opportunity passes me by!
Yep. I'm really torn. This opportunity and that root canal are vying for my choice as first things to do today.
new pic?
Sorta. This is my better side. Or so my mom says.
+8.01...