We need not say how pleased we are to hear Biggs going bullish on Italian lenders. With the short selling ban about to expire tomorrow, and Italian banks falling hard in today’s session, Biggs is facing a rogue ride. Biggs is 75% long on a global portfolio basis. From Bloomberg;
Biggs said today that he bought a basket of Italian stocks three or four weeks ago weighted “heavily” toward banks. Intesa Sanpaolo SpA (ISP) and Unicredit SpA (UCG), the two biggest Italian banks by market value, have fallen to price-earnings ratios of 7.3 and 6, respectively, compared with the valuation of 14.3 for the MSCI World Index.
“The more we studied Italy, the more we felt that not only were Italian companies cheap, but the new government actually had a chance of making some real progress,” Biggs said today during an interview on Bloomberg Television’s “In the Loop” with Betty Liu today. “Something gets that cheap, we’re willing to take a shot at it.”
Earlier this week Roubini became bullish. We have been waiting for Biggs to show up on our radar screens. Wait no more, Biggs is back. Lack of volume in the market is apparently great. Nobody actually wants to sell stocks, and sellers move higher, while the money on the sidelines desperately must get invovled. The man who was dreaming of huge shorts 20% lower, has now once again increased his bullish bets, in anticipation of this “nobody wants to sell stocks” rally to take out new highs. Warning signals are flashing. From Bloomberg;
“There’s a huge amount of money that has been caught on the sidelines in a market that continues to creep its way higher,” Biggs, the founder of hedge fund Traxis Partners LP in New York, said in a phone interview yesterday. “I interpret it as a positive sign that not much of the potential buying power has been consumed by the advance so far.”
Biggs is bullish on stocks, but nervous at the same time. Not really what we wanted to hear after this Santa run up. Biggs is according to himself, “nervous he is not long enough, but if the market goes down, he is nervous he is still 65% long”. Video below.
We thought this performance was impossible, but Biggs is back. After dreaming of the ultrashort at the bottom of the market last week, Bigs is now turning bullish again. The man has been buying 1290, selling 1180, buying 1280, ultra shorting 1165 and now again bullish at 1265. After the huge rally we saw this week, where many smart shorts have been totally killed, Biggs is now providing us insight, from the confused investor. It might just be the perfect Friday short opportunity, at least short term, until Biggs goes bearish again. Can somebody explain to the old man, the market is run by HFT Algos, and has nothing to do with the Economy.By Bloomberg;
Barton Biggs, who trimmed bullish bets in September before U.S. stocks posted the biggest monthly gain since 1991, said that while he doesn’t want to be fully invested in equities, “it’s hard to get really bearish.”
Mega Bullish at 1290 accompanied with “extra” bullish positions, dreaming of ultra short at 1080 (but actually 20% long), now Mega Bullish at 1290 again, and we trade at 1265. Time to name an Indicator after the Guru. Bloomberg video below explaining just how bullish Biggs is again, and MF Global is just a minor thing…..
When markets were 15% lower he was dreaming of being ultrashort. Now, Mr Biggs is disclosing his bullish stance again by proclaiming he has gone from 20% net long to 65% net long. He also explains he is not a speculator and that the market will go slowly higher. That was when the DOW was down small digits earlier today. Well, our readers remember what we wrote late this Friday, “Wish I Was Short”. Watch below Bloomberg video for the final Sell signal. Biggs, bullish as ever. As we said, all pundits are confused.