Look Ma, I’m Winning Again

You fuckers can’t keep a ‘calculator brain’ down for more than 2 days. As you know, “The Fly” had enough of this bullshit rally and went short, much to your chagrin, before the market reversed lower.

At the present, I am bathing in FAZ, FXP, EEV, DUG, amongst others, with a distinct feeling that they will make me buckets, mind you, of sweet U.S. coin.

I flushed out all of my KBR, most of my M, GU, TNA and ROM. I rejuggled, if I may be so bold as to say so.

Also, I bought more FXP, thinking there is no fucking way Chinese stocks continue to go up— God forbid. And, I started a small short position in GVA.

In short, I am net short and feel overzealous in my rejuvenated efforts to deball my neighbors 401k plans.

NOTE: I am still long a variety of names. However, as of now, I am net short.

I am selling out of my KBR position, in order to raise a lot of cash.

Also, I am selling half of my queer M and GU positions, at a loss.

I am still holding TNA, GME, UNH, PFE, amongst many other little positions. However, for the most part, I will trim down my longs, then methodically average down in FAZ and FXP. And, I will start buying some EEV and DUG.

The rally has a life of its own. It can run higher another 500-750 points—no problem. In order to NOT get stuffed into a trunk, then shot 9 times, I will balance out my shorts with some longs, specifically TNA, until I have the conviction to be nakedly short.

Right now, I’m all bashful and shit, covered in jungle leaves and Indian style war paint.

Well it looks like everything is back to normal again. People are buying stocks. Larry Kudlow is talking about mustard seeds and CNBC as a whole is all giddy and shit.

And, once again, all of my ‘smart friends’ are bullish, exclaiming “the Santa Claus rally has begun!”

Look, I’ll say it once more, lower oil prices is not good for the economy. The Government needs tax revenue, not a population with a higher savings rate. We’re in crisis mode here. Also, I don’t hear anyone talking about the negative headwinds to the oil/gas industry. Last I checked, those fuckers were the only ones making money, able to pay bountiful Federal taxes. Unless oil rebounds quickly, expect to see some pretty ugly numbers out of the sector.

Nonetheless, the underlying stocks do not reflect the deteriorating fundies, similar to homebuilder stocks, circa 2005.

Also, because of the anticipated 300+ billion infrastructure bill, infrastructure names, with shitty businesses, are sprinting higher. Look at GVA and VMC for proof.

Both of those companies are ripping their customers off, raising prices in a spiraling environment. I can’t wait to read about the type of egregious mark ups they assail the tax payer with. It will be grande.

Long story short: fuck this rally. I’m about sick and tired of it. It’s time for a little Great Depression, the sequel, to kick in again. With my money, I will begin unwinding my longs and start shorting stocks, in a very maniacal sort of way.

You are!

Nah, just kidding.

No, but seriously, you’re fucked.

I bet you thought there was no ramifications to falling oil prices.

Guess again.

HARTFORD, Conn. – A steep drop in gas prices has created an estimated $100 million revenue shortfall in Connecticut’s state budget for this fiscal year, which already has a projected deficit.

State officials thought the state’s petroleum wholesale tax was going to raise more this year than the $340.7 million it brought in the year before. But at least a third of the expected revenue is gone because of the falling gas prices.

The average price of a gallon of regular gas in Connecticut has dropped from an all-time high of $4.39 on July 7 to $1.98 on Monday, according to the automobile club AAA.

State lawmakers met last week and reduced the deficit for this fiscal year, which ends next June 30, by $300 million. But officials say the current $18 billion budget still has a deficit of at least $250 million, and the revenue shortfall for the next two years is estimated at $6 billion.

Connecticut is just the tip of the iceberg, with regards to state budget shortfalls. All states baked in much higher oil prices, when doling out money. Sure, our local politicians say they want lower oil prices; but it’s just another form of taxation. The cool part is, unlike the tobacco bond fiasco, they get to blame high oil on terrorists and men with sheets on their heads.

The stark reality: our country is mismanaged from the top down. Shockingly enough, America has the world’s largest economy, yet the most inept stewards watching over the Treasury.

Speaking of which, the “TARP funds” have been stolen and Congress has no idea where the 100’s of billions went.

Sweet.

[youtube:http://www.youtube.com/watch?v=9UyVsm7Xrio 450 300]

You may think “The Fly” is insane, with his intra-day madness, switching positions from bull to bear back to bull. However, if you don’t know by now, the market is offering investors/traders annual moves in a day, or sometimes hours. In other words, the type of shit you see me doing now, I might have done in 6 months of trading, all in one fucking day.

Everything is fast, as men with large pockets full of cocaine trade stocks, as if the world had a fucking time bomb attached to it.

Just to recap:

At first, I thought the market was going to melt up, in a very SHAM-WOW sort of way. Then, all of a sudden, the market started to nose dive, which in turn scared the shit out of me—unwilling to ride the market down anymore. So, quickly, I took profits on BAC, GE and a variety of other names.

Here’s where I fucked up:

Getting greedy, I rushed into FAZ and FXP, into strength. Big mistake.

Soon enough, the market remelted higher, likely as a result of a big market seller getting cleaned out. Worried about my exposure to 300% instruments of the devil, quickly, I hedged it with TNA , KBR and some GME.

At the end of the day, I nearby killed myself, all for nothing. I made a bunch in my longs, got murdered on some inverses and ended up a few percent, net-net.

Basically, I am willing to be short a few banks and loads of Chinese names, while long other stuff. If you are short oil stocks, you have to be worried, since oil stocks are bucking the trend higher.

In short, I should have taken my own advice and went for a sandwich instead.

I had enough of this shit. The market is being run by the lunatics inside of the peanut factory.

I just fell victim to an old fashioned shake out, by selling a variety of longs—thinking the market was about to crap the bed.

Aside from the price action, a few things bother me, namely the incessant move up in t-bills and the collapse of oil. Aside from that, everything is peachy.

I sold out of my GE, BAC positions, but kept KBR, M, ROM, UNH, GME and many others. I bought more FXP, like some sort of crack addicted heroin user. And, I dipped my toes into the empty pool called FAZ.

In short, it’s time for me to get on a plane and head back to Romania. You know, tend to the mountain goats and take in the 3rd world atmosphere.

NOTE: Before I leave, I am buying a little more FAZ, down $10.

I sold 75,000 GE @ $16.95.

UPDATE: I sold the rest of my GE, north of $16.90.

UPDATE II: I sold out of my BAC position, north of 13.70.

UPDATE III: I am selling out a variety of longs and adding to FXP and FAZ. This is a worst case scenario for the markets. However, with the majority of the proceeds, I will hold cash.

Fuck this shit. Time to raise cash.

You shorts thought your regular paper towels were super absorbent. Guess what, the bulls rags are made by the Germans. You know they make great stuff.

The SHAM-WOW rally rag is sucking up all of your money.

Look bears, see all that money, cola, coffee and coin? The SHAM-WOW rally rag sucks it right up.

Quit wasting money on paper towels. My guess, you are spending at least 20 bucks per month on those old things. Get with the Germans: SHAM-WOW.

Into this rally, I want to absorb all of the money, cola, coffee and coin from the bears in KBR, GE, M and BAC.

I added to my GE position, buying 10,000 @ $16.90.

Disclaimer: If you buy GE because of this post, in the year of the Dragon, great conflicts will besiege you in Europa, while dark clouds descend upon your loved ones in Mesopotamia. And, you may lose money.