Late Night Pick-Me-Up

[youtube:http://www.youtube.com/watch?v=0QaCNZeld04 450 300]

Long live iBC.

“The Fly” wins again.

Here comes the Treasury and their bag of market tricks. Do not trust the cheese makers, for they will rip out your soul and force you to mine coal in western Pennsylvania.

All of a sudden, the banks are willing to work out mortgages, in order to stem the foreclosure tide. However, all of these efforts will fall on their face, once the home owner is out of work.

This is what you need to know:

The market is severely oversold, but appears to be unable to snap out of its state of fuckery.

Oil gapping lower like this is incredibly bearish for oil service companies, more specifically rig/parts makers. Also, expect to hear of many canceled exploration projects, due to it “not being worth it” anymore.

As an investor, you have a choice to make, which is: go long and hope that the market bounces until turkey day. Or, follow the downward momentum lower and believe that the worst case scenario will come to fruition. Or, you can coward out and go to cash.

Personally, I want to be optimistic; but it’s hard. Every time I get all giddy and shit about kicking old men down open manholes, the market reverses course and poleaxes my long positions. At the present, I have little in the way of long positions, but a lot of cash.

Emphatically, I believe [[FXP]] , [[EEV]] and [[DUG]] are going higher. However, at the same time, the banks are way oversold here.

At the end of the day, it’s all about managing risk and making sure big losses don’t get big and taking profits, when you can. For now, I believe there is still more risk to the downside than getting squeezed out of my shorts, due to an egregious turkey day rally.

UPDATE: I bought 2,000 [[DUG]] @ $38.35 and 1,000 [[EEV]] @ $86.45.

The “Thanksgiving Rally” has been postponed. In its place, I offer you a General Motors Corporation [[GM]] bankruptcy and all of its trimmings.

See, it’s not just about General Motors Corporation [[GM]] and Ford Motor Company [[F]] going away. It’s about AutoNation, Inc. [[AN]] , Cummins Inc. [[CMI]] , Johnson Controls, Inc. [[JCI]] and a variety of steel manufacturers going with them.

My feelings, as always, is to kill them all.

MALICIOUS VIRUS UPDATE:

The code has been identified and removed. My guess, one of my enemies, like Tim, put it on the site. Seriously, when I find out who did it, I will be reporting your dumbass to one of my contacts at the FBI. Then, I will find out where you live and break your jaw.

As for the market:

We are going down. If you like money and all the cool things that come with having some, I suggest selling some longs and hedging up.

My favorites, as you know, are [[FXP]] , [[REW]] , [[EEV]] and [[DUG]] . Oh, I also think Petrohawk Energy Corporation [[HK]] is going to single digits too.

UPDATE:

A view of The iBC 1 Year Anniversay Party (the long deck):

My party is a lot better than that.

Pardon the technical difficulties over at iBankCoin this morning. One of our IT guys, Vincenzo, was so happy over our 1 year anniversary, he accidentally spilled his entire bowl of gravy with raviolis on the iBC servers. Since then, he has mopped up the mess and I have ordered him to keep his fucking gravy out of the cold room.

Fucking bastard.

The stock Gods have spoken. As you can see, they favour [sic] “The Fly” and his staff, via gifting us with a market crash on our 1 year anniversary. If I am correct, they will weigh into that son of a bitch Petrohawk Energy Corporation [[HK]], with the might and vengeance of 100 thunderstorms, and bring that fucker under $17.

Some people trade really well in up markets. Others do great in down markets. Plutonium Petey knows how to game all markets. However, he does especially well in insane markets. It just meshes with my personality. What can I say?

With my money, I will short more Petrohawk Energy Corporation [[HK]] and get long more [[FXP]] , in size. That little bullshit Chinese run is over, you little fuckers. Do you hear me?

On the back of General Tsao, “The Fly” will catapult his year to date gains north of 100%, effectively enriching him to the point of extreme laughter.

Amidst all of the incense burning in “The Fly’s” office right now, he believes oil is fucking itself. You, the internet leech, might want to take a good long look at [[DUG]] .

UPDATE: I bought 5,000 [[FXP]] @ $76.55 and 2,000 [[DUG]] @ $40.15.

1 year anniversay coming tommorow. The vast success of this site could not have been accomplished without “The Fly” and Senor Tropicana.

Oh, and those other guys are pretty cool too.

Festivities pending.

UPDATE:

[youtube:http://www.youtube.com/watch?v=rODeuywknwE&feature=related 450 300]

There is no sense to be made of this tape.

China’s stimulus package has to ding treasuries, but it didn’t.

Commodity stocks should have run hard, but they didn’t.

U.S. bank stocks diverged from foreign banks, in a big way.

Intra-day, the market collapsed from the highs, yet [[EEV]] and [[FXP]] closed near the lows. Stocks like Petrohawk Energy Corporation [[HK]] remain stubborn, bucking the trend higher.

All in all, this market is out to bankrupt people, in disorderly, rapid fashion.

[[SRS]] , [[REW]] and [[SKF]] shot higher, but Asian stocks were strong!?!

What the fuck am I missing here?

My guess: Asia gets the mud kicked out of it tonight, effectively enriching [[FXP]] shareholders tomorrow.

Also, either way you want to slice it, reversing so hard off the highs is dreadful. On one hand, banks are severely oversold. However, on the other, commodity related names are too high.

Something has to give. Either way, I am sure it will be painful and entirely idiotic.

Top picks: short Petrohawk Energy Corporation [[HK]] , [[REW]] , [[FXP]] , [[EEV]]

Going into the closing hour, expect the market to whipsaw about, in an effort to fuck as many people as humanly possible.

Just when it looked like we were rolling over, BAM, we melted up. The quick knee jerk reaction is to buy now, in anticipation of a late day rally. However, the market does not follow predictable patterns any longer. So, my adivce, as always, is to stick to a thesis, hedge up if you can, and deal with it.

If you are net short, prepare to average up. If you are net long, prepare to average down.

Basically, the volatility is so extreme, one could make money, with timely buys/sell, playing both sides of the market.

At the moment, I am net short. However, it’s worth noting, I am a little nervous about that, due to seasonality.

Until the Goldman Sachs Group, Inc. [[GS]] and General Motors Corporation [[GM]] situation is resolved, expect a black cloud to loom over the markets head. With that in mind, I am comfortable loading up on shorts here. Of course, my position is different than yours, sitting on big year to date gains.

Whatever you decide to do, be sure to think “worst case scenario;” because this market is all about making peoples worst nightmares come true.

I no longer need to wear a disguise (mustache, sunglasses) when buying Dunkin’ Donuts coffee. See, America is all about being poor these days, with men like Joe the Plumber leading the poverty craze lower.

As you know, “The Fly” is all about conforming to current trends.

As a result, I no longer find it useful to walk/roam around with Starbucks cups, since rich people are played out. Instead, I wear my Dunkin’ poverty coffee cup with pride and outright dejected dishonor.

Also, I donated my extensive wardrobe of Ralph Lauren clothing to homeless dudes in Manhattan. And, to make matters “better,” I bought myself a new wardrobe of  “Crocklers” pants, “Beverly Polo Association” shirts and “Jones NY” suits.

Again, acting poor has never been so fun.

I drive through highway tolls, exclaiming out loud “poverty is making me commit crimes and shit,”  as I skip the toll. And, I send in my bills late, then ask for “payment programs,” due ot severe economic hardship. I envision a day where Steve (my neighbor) and I discuss the current state of NYC sales tax and how it affects regular folks, over a nice barrel of flaming garbage.

In other news, I’m going all in short here. The reversal is screaming “we’re fucked,” so act accordingly.

Oil will trade lower. With that in mind, [[DUG]] and short Petrohawk Energy Corporation [[HK]] makes “massive” sense to me. Also, I have been buying blocks of [[FXP]] , [[EEV]] and [[REW]] .

At the present, [[REW]] , [[EEV]] and [[FXP]] are my largest positions.

And, finally, I blew out of a variety of names, taking losses, in order to reposition for the pending egregious move to the downside.