The PPT does not grade stocks, based upon simple moves in price. The program was developed to rank stocks, using pertinent data [commodities (soft and hard), currencies, treasuries, volume, beta, etc.] and how they correlate to stock prices. While it’s true, at the moment, 95% of all stocks in The PPT are ranked sell-st sell. It’s also true, this level of bearishness, typically, is unsustainable and often leads to an oversold bounce.

Just know, today’s drop (-17.05%) in “Hybrid score” (which combines both fundamental and technical data) represents the 2nd largest drop in PPT history. In all previous incidents of 15%+ drops in Hybrid score, the market rallied the very next trading session. Like I said earlier on the PPT, trends are made to be broken. However, for the moment, I am willing to give the market the benefit of the doubt, since it has dealt with adversity, exceptionally well, as of late.

Nonetheless, I took today’s sell off as a warning shot and opportunity, to reshuffle my deck, selling off losers, while adding to core names and new positions. At the end of the day, “The Fly” won, even though he lost, if you know what I mean.

Have a deliriously extravagant 4th of July.

I bought 10,000 TEKELEC (TKLC: 16.75 -2.62%) @ $16.70 and 10,000 ADTRAN, Inc. (ADTN: 22.98 +2.64%) @ $23.05.

UPDATE: I bought 10,000 Corning Incorporated (GLW: 15.14 -2.82%) @ $15.35.

Disclaimer: If you buy the above stocks because of this post, the market will destroy your marriage and put you on the street with a tin cup. And, you may lose money.

Fuck it, I changed my mind, with regards to my current positions. I’ve been toiling over my current structure and, frankly, have been in denial for too long. I have been slowly bleeding out for about a month now, so it makes little sense to continue holding onto bullshit depreciating assets.

I have decided to build around certain names and use the proceeds of my sales to fund my new investment thesis. In other words, I have been slashing and burning through my positions, going to cash, in order to accumulate core positions at a discount and new names on the cheap. The reason for this shift is very simple: everything is dropping now. Therefore, it makes zero sense to hold onto low quality crap, when you can buy high quality crap, at a discount.

Hence, I sold out of Trident Microsystems, Inc. (TRID: 1.76 -2.22%) , GameStop Corp. (GME: 21.07 -6.19%) , Ingersoll-Rand Company Limited (IR: 20.80 -2.80%) , Umpqua Holdings Corporation (UMPQ: 7.26 -5.47%) , Sify Technologies Limited (SIFY: 1.59 -5.92%) , (CNXT: 1.30 -4.41%) , Arena Resources, Inc. (ARD: 30.19 -3.18%) and Finisar Corporation (FNSR: 0.535 -4.46%) . I’ve decided to stick with, through good times and bad, Flotek Industries, Inc. (FTK: 1.88 -5.05%) , (ENTR: 2.35 -1.26%) , Atmel Corporation (ATML: 3.79 +0.80%) , Corning Incorporated (GLW: 15.14 -2.82%) , OmniVision Technologies, Inc. (OVTI: 10.07 -3.27%) , SandRidge Energy Inc. (SD: 8.35 -3.02%) and salesforce.com, inc. (CRM: 38.16 -1.93%) . For the moment, I am holding (UNG: 13.11 -4.17%) and (ERX: 26.25 -10.71%) . However, they are trading positions and subject to sale at anytime.

With the proceeds, I will likely nibble at some of my core holdings, but in a patient/methodical manner. More importantly, I will commence building a portfolio of select tech names, at a deeper discount, if possible.

Based upon past statistical data, The PPT is suggesting the market will bounce tomorrow, or at a minimum, sometime very soon. Therefore, I will not be adding any shorts to the mix.

Ooh, U.S. employers slashed jobs, sending the unemployment rate up to 9.5%. Are we about to form the ever ominous “W” formation, with regards to the markets and the economy? Stay tuned friendly folks of the internet; we shall find out soon.

If I was to tell you “there was no surprise in today’s weaker than expected jobs numbers,” you’d call me a “market apologist” and “permabull” (an internet favorite), so I will refrain from doing so. What’s important to note today is my face being ripped off by rabid clowns, completely unexpectedly, due to my long bias. For the day, I am “enjoying” steep declines in (ERX: 26.25 -10.71%) , GameStop Corp. (GME: 21.07 -6.19%) , OmniVision Technologies, Inc. (OVTI: 10.07 -3.27%) and Corning Incorporated (GLW: 15.14 -2.82%) —just to name a few. The pendulum of death swings in both directions. Much to my chagrin, it is now stuck in my cranium.

Despite today’s drubbing, I’m not going to throw gasoline on the grill, by shorting stocks here, after a 170 decline. The fact of the matter is, stocks have responded very well to sell offs, in recent months. Therefore, I will tough this one out, like all of the others, unless of course the shadows near my favorite urinal tell me to hedge my positions. Last I checked, the shadows were just sort of standing there, doing nothing.

UPDATE (PPT only): THIRD LARGEST HYBRID DECLINE EVER (statistical data on previous dips of this sort)

by defeating the Canadian hegemony over the blogosphere. Vote iBC.