This current slide is a bit different than the ’09 variety. I am seeing aggressive selling, spearheaded by retarded government policy mishaps. The end result: bulls are having their faces punched in by burlap boxing gloves.
We’re all trying to decipher the market, in order to best determine where to put our worthless fiat money. I can tell you, looking over The PPT, [[SRS]] and a variety of others ETF’s (which were flagged as buys yesterday) are registering their highest scores ever recorded in PPT history (1year). What does this mean? Well, for one, it means that people are buying the inverses again and the volume is being flagged by our PPT algorithms as being very bullish. On the other hand, typically when a stock hits an all time high or low score in The PPT, it often represents oversold/overbought ranges. One of the main new features of PPT 2.0 will be to automatically identify oversold/overbought conditions. Remember, stocks always look the best at the top and worst at the bottom. For the year, Flotek Industries, Inc. [[FTK]] is up more than 60%. Most people thought they’d be at zero by now.
Anyway, it’s important to view this sell off as legitimate, in the sense that money managers are not happy with Obama’s plans to fuck the banks. I know the banksters are evil and they should all be rounded up and sent to Nike prison factories in Vietnam. However, remember this asshole, without banks doing their dirty deeds, America would be a 2nd rate nation (oh, shit, irony!).
If you are inclined to use this sell off to buy stocks, buy the very best. Don’t bother with low end names that can “ape-rape” you if you are wrong and the market continues to get “burlap-punched.” At the top of my menu are steel stocks, like United States Steel Corporation [[X]] , POSCO (ADR) [[PKX]] and Nucor Corporation [[NUE]] . Also, I like select tech names down here, like Equinix, Inc. [[EQIX]] , TEKELEC [[TKLC]] and [[RAX]] .
In closing, I sold a little bit more today, upping my cash position to about 16%. I am taking hits and not enjoying the carnage. Nevertheless, it is my belief we shall bounce soon and hard. Instead of adding to names here, then having to worry about it over the weekend, I elected to “slow my roll” and reserve my buy orders for Monday, which may coincide with The PPT‘s legendary oversold reading (below 2.30).
NOTE: Here is some melodramatic music for you fucking drama queens getting blown out into the bell. NEVER use margin, unless used for the purposes of hedging.
[youtube:http://www.youtube.com/watch?v=T20PLsUZsZA 616 500]
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MY EYES! OH THE HUMANITY!
The Fly is(n’t) God.
I love dip-buyers.
The Fly is God.
http://finviz.com/map.ashx
Heat map looks like tech, financials, and basic materials all took hits. Financials would be the obvious one that is correlated to regulatory policy, but tech has its sensible growth story for the coming years because of the historical low in IT spending as a % of GDP and obvious tangible popularity of virtualization and the iphone. Energy and commodities have deleveraging risk I believe because of their price performance and carry trade relationship.
I think it would be prudent to find some good tech, perhaps high beta, to asterick as a buy when the market begins to recover from this fat fuck jenga drop we’ve seen the past 3 days.
What are you getting loaded on tonight Fly?
RAX rack space hosting
Probably one of the best posts from The Fly despite the fact that is was less humorous than usual.
Yep, stuff like this is what distinguishes The Fly from sub-par bloggers and keeps me coming back.. Good post.
Only one year of history on the PPT!!! Can’t you backtest that sucker? That’s less experience than Obama!
Exactly, 1 year, during a homogenous one-way market.
rofl, yes, we’ve been going STRAIGHT UP since January 2009!
whattadouche.
That’s right jackass…you knew it was going to be a one way market all along… Sure… All else being equal the Fry(sic) stayed long the 5 months the year in the face of all kinds of bearish “we are going to Dow 3000 talk”
looking back it all seems so obvious… Stay long after the epic meltdown… Hindsight and all…
The PPT works in any market. That’s the point.
To all doubters:
Do yourselves a favor and sign up for The PPT.
In this wild ass, rigged game, you will need it.
Or you can go it alone and have all your anal warts ripped off by March
courtesy of the New York Death Exchange.
The choice is yours.
The Fly is God.
Will Mutual Fund Monday save us?
One year is all I need, fuckface.
nice music selection..thanks..I was thinking overcast thoughts today – this hit that bid and LINN AH
My face-melting losses this week are less important than this: I own shares in growth companies which I bought at attractive prices.
they’ve yelled fire in this crowded theater so many times we are almost immune to effect now – it’s hard to sit thru the main feature and ignore the noise.
Please elaborate
Maybe its a case of “The world is not how they tell you it is” (Adam Smith). The extreme anomaly of zero interest rates has US liquidity burning through emerging markets, commodities, and energy. The bubbles have to be stopped particularly because they are not occurring on main street nor creating jobs. This is the talk (maybe action) they are resorting to, in order to slow the liquidity flows to the wrong places. Interest rates cannot be raised but they can still talk the market down. Cheers.
I don’t think anyone in the WH has ever heard of Adam Smith much less read him..the saving grace is that for all their puported over reported “smarts” they manage to accomplish nothing…and I hope they are encouraged to continue in this fashion. Zero is as zero does in an empty suit soon to be auctioned on ebay with no takers. Did he ever disclose his IQ? Didn’t think so….
firstly, what is the WH?
secondly, who hasn’t read smith?
urgh… this is a financial blog. not TMZ… no disrespect to TMZ. my fav fucked face holywood show when got nothing else to watch…
Have a great weekend guys! Do not forget to donate to UNICEF. If you have already donated, then throw a little more into the pot. 20 bucks. Please. Those guys need it more then we do;)
http://bit.ly/5Ev9oa
Fuck off….
what’s with the agro against the weakest and desperate, needle dick bug fucker?
Fucking bearshitters. If you can’t beat em, join em for a couple months and make some money.
holy fuck this site sucks you worthless sheep that follow some complete fucking moron. you are all useless humans who can’t fucking think for themselves. suckers.
Go Eat Your Mother…..er…ah…Sir!
Despite the recent pullback, the intermediate-term trend is still strongly up. See the link below, note the ppo at the bottom and review for all major indexes;
http://www.freestockcharts.com/?gclid=CMr_0676454CFQ4NDQod0mI29w
Small caps in particular have not had the wind as strongly at their backs as they do currently since 2003.
The % of S&P stocks below their 10-dma will not be updated until much later tonight at indexindicators.com. But it’s a pretty safe bet the % is as low as it has been since the July 09 intermediate low and maybe even the Mar 09 downtrend low. This indicator has pretty much mirrored the PPT hybrid score but with a longer track record. Thus, what senor mosca said about a strong bounce coming.
fid
I will now be opinionated, and dogmatic:
My portfolio is 90% invested in equities, 60% of which is invested in high quality Chinese names. If you are not using this pullback to invest in these explosive Chinese stocks while they’re fueling the fastest-growing economy around, resting 40-45% off their highs from just a few months ago, you are missing a great investment opportunity.
Bubble be damned; China is a growth engine.
That is all.
(disclaimer: mr. president owns fuqi, ady, cpby, and liwa)
PS…the above-mentioned names are trading at 6-8 times forward earnings.
fuqi????
christ, that stock topped in sept.
Ah, skeptical, the #1 iBC toolbox. Look at the fundies and the value and please, present a bear case.
Please??
The bear case is that the Chinese gov’t is slowing their economy and these companies may never see this level of earnings again…good luck to you, but you could be down 50% before you know it. The long term bear case is what is their earnings potential without the government backing…kind of the same reason why GS is getting trashed here…without the gov’t backing, true earnings are much lower.
And that is not priced in as they trade with forward p/e’s if 6-8?
“high quality Chinese names”
ROFLMAOHAHAGAAPJIZZZZZZZZZZZZZZZZZZZZZ
Seriously.
Hey Fly,
I really feel we will slowly recouped the selloff starting Tuesday afternoon.. We will be back strong in the first 2 weeks of February.. I could give 2 shits about Obama but he has struck a nerve in me this week.. He can not stand against the Sicilians and the banks lol.. Apparantley, Obama seems to have some type of death wish by trying to change the system.. It is not going to happen.. Have a great weekend FLY.. PS, just think in 3 weeks you will be up over 20% for the year…
Fly,
I may need a tad of personal attention,,,,,money management issue….if you might have time thanks in advance,sir
too much uncertainty now in China for small caps – interest rates, the RB, the wild wild west lending, govt agendas….small caps was last year..high quality Chinese in 2010 – but please shut up just in case I want to go whole HOGS in some of these—don’t pump just yet, ..thanks and cheers!
Well, although I do believe there would be a bounce, which might even take us to 1170 on the SPX, we are doomed. Thrust me. The next 2 months would be a hell.
“upping my cash position to about 16%”
WHAT????? 16?????? I would suggest you up your cash to 80 at least at any bounce within next week or so.
DO NOT buy anything until 1000 SPX or lower, just an advice from stranger which shouldn’t be taken seriously
BTW, it’s NOT Obama who did it. It;s just charts 🙂
http://www.youtube.com/watch?v=lVZq9Lk2hYQ
sketches of spain, Miles Davis.
good listening tonight.
“However, remember this asshole, without banks doing their dirty deeds, America would be a 2nd rate nation (oh, shit, irony!).”
Maybe if you keep sucking that golf ball through the garden hose they won’t take out a $750,000 life insurance policy on you and then facilitate the collection.
Tongue in cheek sarcasm of course. You make some outstanding picks Man. Consistently good judgement. I am impressed. NPK looks like it’s made some coin.
I was not wrong on EQIX.
Here are my random thoughts on this situation. This is a correction that could get nastier. However, the put/call ratio says an up day is imminent. Mondays have not been good for weeks, but there have been a couple of big Tuesdays. Where is the USA recovery? Warren Buffett says he sees no uptick in sales at this time. If the commods keep falling, the inflation talk will change to deflation talk. These Obamanite people are incompetent. The cutting of government spending and taxes and the endorsement of free enterprise is what is needed at this time – good luck in getting it from the Obamanites.
Here’s a question I’m willing to throw out there: yesterday’s 2% correction should have produced a good move in TLT, which I’ve been accumulating for just such a move. But, in fact, it was down. Anyone have thoughts on this? Significant selling of equities, but no money moving into traditional safety? I don’t know what to make of this, but my first thought is that this correction might be short lived. On the other hand, given the fact that this was a low-volume move up since late spring, there is no reason why the correction shouldn’t be quite nasty.
I wondered the same thing, Spooky. I can only guess the lack of fear means means there is more to the downside before this is over?
I don’t know Wilmer, as I’m just a gentleman farmer in this here land. It seems like there’s more than one thing going on. This Obama vs. the Banks business is going to get friggin’ weird–and, at first I dismissed it. I still think that that’s the right way to go, as I don’t think that’s what tanked the market. It was a catalyst for a necessary correction. However, the way everyone is reacting is weirding me out. The banks are powerful, and if they really threaten to cave the market, it’s not clear to me what will happen.
Quit being drama queens this dip ain’t nothing to worry about.
Don’t be a wussy!… BUY! BUY! BUY!… I predict we will be back up at the highs by the end of next week as besides being ridiculously oversold we have numerous bullish catalysts for next week.
1. AAPL earnings (BULLISH)
2. Fed meeting (BULLISH)
3. State of the Union Speech (BULLISH)
I got fully long with leverage at Friday’s close. Watch for a massive gap up on Monday.
Mutual fund Monday to the recsue or does panic selling beget more selling? Tough to call. Apple will need monster numbers to turn this one around.
Obama is stomping around like the inexperienced politician he is. Thank god for the fly. I always check in with him and the PPT for guidance.
Bears Fire Up The Grill For Bull Burgers
http://www.nytimes.com/1992/09/20/business/wall-street-advisers-who-stretch-the-truth.html?pagewanted=1
Touche…
An article from 1992? Whatever, dude has evidently learned a lot since then, he’s made some good calls in the last few years. But the Forbes article, that’s just a catchy reiteration of the standard bear case. Bull or bear, one thing is certain: there are an awful lot of bankruptcies baked in for 2010, of all types. That won’t encourage further equity investments…and it takes a lot of buying to make a sustained bull market.
PPT says we’re are at a historic buying opportunity. That’s all I need to know… BUY! BUY! BUY!
Seriously, how low can the S&P go? It can’t break below 1060! It can’t! Impossible I say! What is this… the dreaded SCARY OCTOBER (aka the worst month for stocks of the year)? The Dow must have 5 digits! I say the worst it gets is another 1-1.5% then it’s back in bull mode. If Helicopter Ben is re-confirmed this week, we get back 200 points on the Dow.
ATTENTION!!!
The fiends have gagged a generation of pacified fools
Bound by our greed a nation enslaved as corporate tools.
Arise and raze the legacy of their lies
To realize that this in itself is an ascension
Towards the day we revolt.
As the seeds you’ve cast away take hold
War will be born.
Rejoice, the age of the fall has begun
We’ll dance as the palaces burn.
A shot gun blast into the face of deceit
You’ll gain your just reward.
We’ll not rest until the purge is complete
You will reap what you’ve sown.
My redemption lies in your demise.
In such a world as this does one dare to think for himself?
The paradox of power and peace will destroy itself
To know the truth and live in fear of no man.
To realize that this in itself is an ascension
Toward the day we revolt.
As the seeds you’ve cast away take hold
War will be born.
Rejoice, the age of the fall has begun
We’ll dance as the palaces burn.
My redemption lies in your demise.
Rejoice, the age of the fall has begun.
We’ll dance as the palaces burn.
LOG
You people are all smoking bad weed if you think this game of ponzinomics is going to continue to work. You Kool Aid drinkers are blind bats traveling through a mind field and have it coming!
http://market-ticker.org/archives/1893-Weekend-Roundup-123.html