Ref: Why the big broker behind your financial adviser might be working against you
Tell me, which of them (the big brokers and investment houses) warned anyone about it being time to sell in 2000, or in 2007? There are exceptions out there, especially in smaller boutique style shops. But generally speaking, this thing we call Wall Street (big firms and the media that is their propaganda arm) exists to sell people the dream, then mark it up, front run it (in one way or another, legally or otherwise) extract fees from it and ultimately fleece it on the way down again (as regular people puke a tanking market and pay trading commissions for the privilege).
Here I cue up the old story about when I bought my first and only BMW (it was fine, but really it was not me) back in 2002. The deal was done and I sat with the business manager to finalize the transaction. He was a kid who had been fired from Merrill Lynch not 2 years earlier for keeping his clients in cash and totally safe at the market top. Problem was, he was not turning
tricks, err I mean commissions for Merrill. All done.
Just about every day for weeks now, I’ve been thinking, “CIB sure looks like a huge topping pattern; I should short it, but it’s already gone down so much.” But then it would just keep sinking. So I finally threw my hands up and decided that the enormity of the pattern would take care of everything in the end. Thus, yesterday, I shorted it. Here ya go:
Here’s a highly speculative play, but one worth mentioning – – the leveraged (triple-bearish) financial ETF which has plunged from $40,372 (November 21, 2008) to, umm, less than thirteen bucks. There may be a nice little base forming here, though.
So many ultrashort funds have turned the corner to the upside, it’s really quite surprising. One in particular is the triple-bearish-on-financials fund, shown below. It is exhibiting the same kind of pattern shared by so many other short funds: an emergence above a descending trendline that goes back for a long, long time. I’d certainly wait for prices to relax back down to the trendline, but before too long, these might be fantastic long positions.