The Rally Will Continue Until the Pain Threshold is Met

European markets are running on the same day the ECB kisses Trichet goodbye. With him stepping down, perhaps the new ECB will be led by a more dovish Chairman. At a minimum, him leaving is a huge plus for Europe, based upon his history being a stark raving idiot.

US futures are higher, despite softness in Apple. I like the commodity sector for further upside. And, the silver sector is likely due for a bounce, with the announcement of QE2 in England and a ridiculously oversold condition in silver stocks, namely AG and EXK.

With my money, into extreme strength, I will likely take profits. If we trade soft, I will leave my positions in place. The big risk is having exposure into tomorrow’s unemployment numbers. But, at the same time, the market is already pricing in despair. To be safe, you probably want to reduce exposure, get small, and prepare to enjoy the weekend.

I  looked at my Mac screen for about 5 minutes– thinking of an apropos title for the passing of Steve Jobs. I didn’t want to be too melodramatic, nor corny.  I couldn’t think of anything that fit my mood. Generally, I am detached from loss of life, mainly because it’s part of the experiment. But I really feel a sense of loss with the death of America’s greatest inventor, best CEO and visionary.

It’s unfortunate that he had to go so soon. However, he transformed the world  in the short time he was here and made his mark. Well done Steve.

During a time of mass mediocrity and denigration,  we should all mourn the loss of a great American businessman and icon.

Jobs, 1997

Your mood ring said we’d go down today; but now you know better. You cannot defeat mathematics, as it is all things intertwined with humanity and space. “The Fly” pressed his gains today to the tune of 4.3%, sprearheaded by WNR and TEX. This makes no sense to you, as I am now +7.3% for the year. The constellations seemed to be in your favour, yet when you least expected– you were crushed with an asteroid.

The expiration date on this market rally is tomorrow. Therefore, I will most likely be cashing in on some names, in order to preserve the good name of Le Fly and avoid the unfashionable crowd.

To sum up today’s action, I leave you with a true story, passed along to me from Grandpa Fly, from a time when things were simple and absolute.

(this true story was deleted by the Good Christians of the Mid-West Coalition)

Be on alert, the REITS are being obliterated today, sending DRV through the roof. You’re gonna want to watch this very carefully and shares of GS, MS and BAC. There is a bear raid taking place and they are trying to derail the unstoppable and inevitable 10,000 point rally.

I remain long, without reservation, other than my 30% cash load. I will be watching the insolvent banking sector very carefully, as I gingerly sip on a tall glass of bourbon.

Post market wipe out, I want to reassert my wild eyed claims that there isn’t a better sector than the refiners. They have money coming out from their ears and margins have not given back at all, despite the monstrous drop in crude. The Brent-WTI spread is here to say, at least for another two years. And the mid-continent refineries are the best ways to profit from it.

My favorites are HFC, CVI and of course WNR. Other refiners worth a look: DK and MPC.

It’s my fall back sector, one that I am confident in, despite the fucked up economy.

Today, I bought CVI and TCK, in order to press my bets on the coming 10,000 point rally. After my post, I’ve been adding to both CVI and TCK, bringing my cash position down to 30%. I will not throw anymore money into the flaming barrel of garbage, also known as the market. I will simply have to suffice on 70% long and my small EXH hedge.

In summary, I am long TCK, WNR, GSVC, TNA, CVI, TEX, DECK, IPGP and CLF. You cannot stop Le Fly. You can only hope to contain him.

I bought 15,000 TCK, FTW.

I bought 5,000 CVI.

Disclaimer: If you buy CVI because of this post, Moody’s will downgrade Germany and France tonight. And, you may lose money.

I am drinking from a large mug filled with Earl Grey tea, watching Cramer have a seizure on CNBC. Europe is sharply higher despite Italy’s credit downgrade. Everyone is so very scared of CDS spreads widening. But, that’s just a symptom of fear. CDS were blowing out in 2008 too, only to get fucked when the crisis was averted. We have a small window of opportunity to rally 10,000 points in a single day. However, after we rally, expect grimness.

Now that I have some skin in the game, long 65% in equities, I was hoping to avoid getting bounced into a murderhole. I realize Mother Market is upset with me and I haven’t made a sacrifice to the stock Gods in over 3 months. But come on already, cocksucker. Give Plutonium Petey a little respite, so he can further finance the mobilization of his orbital space cannon, for the explicit purposes of offensive war.

On a side note, I was looking for a bottle of Culmen Reserva 2004, a fairly hard to find vintage. I went to some bullshit website and ordered it. Upon delivery, to my dismay, they sent me a 2005. Can you believe that? Those fucking scoundrels sent me a 92 rated vintage instead of the 96, the 2004. My point: there is no honor in this world, not even amongst gentleman in wine circles. Everyone is trying to steal money from one another. It’s pathetic.

Having said that, I intend to “steal” a great deal of money from those who are short my positions today.

As an aside, check out ZROZ, an alternative to TLT, albeit thinly traded.

The robots are broken. We rallied about 6% inside of 30 minutes today. Soon enough, the HFT fucktard bots are gonna go rogue (No Palin) and bid up the market until the average balance of a short sellers account is negative $1,000,000,000, which incidentally would wipe out the entire banking system altogether. Irony.

Because of the coiled back nature of this market, absent any good news, the possibility for a spectacular single day rally is present. I am not talking about your average, run of the mill, regular shmuck from 0hio trying out finance for a few years type of run. No. I would like to see gold drop $1,000 in a single day at the same time stocks rally 10,000 points, just to shut Jim Rogers and Peter Schiff up–once and for all. The very idea of gold makes me sick.

Many of you are scared because you are weak. “The Fly” is a golden falcon, breaking the necks of migrating birds for sport.

Today over 500 stocks gapped higher by 10% or more. That’s ridiculous. 99% of those gains occurred in the final hour of trade. It’s not possible for this to occur, unless the buying was automated by some magical genie in a server rack. If you are short stocks here or long FAZ, you stand the chance to go from up nicely to negative $1 billion within minutes.

I remain short EXH for sport and will liquidate new longs into strength.

NOTE: H/t to TysonandOne in 12631 for putting my SHOMP on paper.

Today I applied a tax to your accounts, those tipped with cement heads and small dicks. I bought into the maelstrom and came out victorious. As discussed earlier, my cash position is down to 35%, as I am looooong millions in WNR, TEX, CLF, DECK, IPGP and TNA.

Check my pedigree.

I warned you to avoid betting against sublime harmony in mathematical precision aka The PPT, yet you chose to press your bets in SKF. I offer no condolences, only disdain. The invincible Le Fly is spinning helicopter blades in your general direction, spearheaded with his WNR.

This is act 1. Next up, panic buying ensues, clown raping your zeroedge ass back into oblivion.

Today I made back 1 week worth of losses, aka more money than you will ever see in your entire lives.