Halftime Report

So, we are half way through 2009 and the market is flat. I must admit, I am shocked by how well the market has responded to a flurry of bad news. However, I understand why it is going higher and that is why I am up 60%, year to date, with a very bullish bias.

In late 2008, I made some dire predictions for the market, underpinned by delusions of deflation. I thought, there was no way the credit markets could return, and as a result, commercial real estate firms/underfunded banks would fold under the pressure. Must to my surprise, the exact opposite occurred.

Maybe it was the devils from Goldman or just plain Leprechaun luck, but the credit markets are back in full force, financing all types of stupid shit. Hell, even the ipo market is back. One tell on how the credit markets are doing is via the price action in [[JNK]] . Put it on your little monitors and watch it very closely.

If you recall, I predicted a 50% first half slide in the markets and a monster 2nd half recovery. My year end prediction was for a decline of 15% in the Dow, which is still entirely possible. We have been blessed with some sort of odd version of “investment inflation,” whereby the price of “stuff” has increased due to asset allocation, as opposed to fundamentals. Some people scoff at such a move as manipulative fuckery. However, I view it in a very bullish way.

See folks, money is circulating again and it’s being invested, in a very egregious way. There are strong signals coming out of the technology space, in particular 4g/smartphone/semiconductor names. And, for the love of green shoots and red robins, oil stocks are ripping out the eyeballs of overzealous short sellers.

Going forward, I believe the markets will trend higher, until it is proven the “so called recovery” is false. To be honest, I have no way of knowing if the economy is going to continue to rebound; that’s the whole beauty of this rally: no one knows what the fuck is going on. We’re all sort of throwing shit against the wall and hoping that it sticks. In my estimation, we have at least another month or two of “easy money,” as economic data is obscured by government fuckery and inventory restocking. If the recovery is proven to be legit, we will end the year above 10,000. If not, well, we might see the market go back to the lows.

As a manager of assets, it is my job to gauge the temperament of the market and make directional bets. In my opinion, as long as people have hope, the market will go higher. Right now, much to the chagrin of many bearshitters, this market is chockful of hope.

As for my investment style, it is about to change in a dramatic way. I will be moving away from the randomly selected small cap space, in exchange for a heavy technology oriented theme, as outlined, exclusively, on The PPT. It will be egregiously Godly. And, most importantly, it will be profitable.

That’s all.

Via The PPT, here are the top 50 winners for 2009, thus far:

1	DDRX	6,319
2	VNDA	2,300
3	DTG	1,228
4	CTIC	1,114
5	AIG	1,093
6	UEC	880.65
7	BGP	820.00
8	NEPH	742.50
9	SMRT	702.65
10	PRSC	656.55
11	IFON	632.00
12	HEB	580.56
13	ANPI	561.54
14	STEC	507.59
15	WAVE	499.11
16	VVTV	490.91
17	PIR	483.78
18	DNDN	436.90
19	GSAT	435.00
20	PALM	434.53
21	NGSX	417.09
22	RAD	400.00
23	RFMD	399.00
24	LNET	398.57
25	CBOU	397.06
26	ENTR	388.00
27	VCI	387.88
28	ONTY	371.25
29	NBS	361.70
30	CHUX	361.50
31	DFT	357.49
32	SPPI	357.05
33	VM	355.95
34	COT	351.56
35	APAC	350.41
36	KIRK	342.26
37	CHLN	335.66
38	RT	332.69
39	MRNA	332.35
40	MGPI	330.15
41	TSTR	330.00
42	ISLE	328.44
43	ISCO	325.00
44	AGEN	320.85
45	NAVR	320.00
46	CMRG	319.23
47	KERX	318.32
48	JVA	313.25
49	WZEN	309.76
50	BZ	309.30

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