The Bubble in Non-Risk is Popping

Given the asshattishness of this market, 70% long is my ceiling. The rest of my money will just sit here, collecting dust, drinking Earl Gray tea.

At the open, I doubled down on my TBT position, with cause. It appears the power elite are dismantling the “risk off” trades, namely Swiss Francs, Gold, Silver and very soon Treasuries. If this market is set to trade up, there is no way treasuries hold their value. Without a doubt, yields MUST go higher, at least for awhile.

Additionally, I bought a shitload of CLF, sub $80. With the WLT news, I suspect coal and steel plays will catch bids. Plus anyway, CLF is best of breed and will trade higher, providing this market bounces.

Last but not least, I added to my WNR.

In closing, “The Fly” is in his fucking spaceship, abducting Tea Party people from Ohio and laser beaming their mustaches off. I am long WNR, GSVC, TBT, TNA, CLF and FL, in size, because I fucking S.H.O.MP. Do you?

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We’re due to bounce hard off oversold levels. I am anticipating a 200-500 point move higher from here. Do to the shift in sentiment, I will be adding to longs today.

Rumors are swirling around WLT, regarding a takeover bid. Truth be told, these rumors have been out there for awhile. However, I believe my source is a little better than the average Joe. I like WLT here, even though it’s up $16 in pre-market trade.

My TNA calls will rip higher on the open. I am looking for it to run past $45, short term.

Finally, we all know the banks aren’t lending, much to the government’s chagrin. What if the FHFA lawsuit is a way to threaten the banks, in order to make them open the spigots? Perhaps the government is using a little leverage in their efforts to get those fuckers to start lending again. If so, I like it. However, something tells me the government isn’t that smart.

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One of the things we do in The PPT is track performance of all stocks during our OVERSOLD and OVERBOUGHT cycles. This gives me an edge by highlighting median or mean returns for the highest beta stocks traded, with accuracy to boot. The following list of stocks (my gift to you) tend to outperform all other stocks during OVERSOLD to OVERBOUGHT cycles. As a point in fact, PPT members do not have access to this data yet, as it is still in BETA, soon to be released in PPT 2.0.

(Stock, Median Return)
AG +16.27&
LNG +13.8%
HFC +9.6%
EXK +9.4%
CVI +9.38%
GPOR +9.2%
REGN +8.7%
WNR +8.02%
COG +7.8%
MDW +7.7%

The best performing ETF is AGQ with an average return of 17.64%. ERX is 3rd with a 7.44% return. If you want more info, quit being such a fucking piker and purchase membership.

The shadows near my favorite urinal started talking to me late in the day, insisting that I sell my TZA and indeud replace it with egregious amounts of TNA and FL. I did exactly that, buying both TNA common and Sept 40 calls, alongside 100,000 shares of FL—starter position.

Although I reduced my cash position into equities, I am still reticent about going all in and will opt for a lighter approach into battle. Instead of heavy cavalry and trebuchets, I will burrow tunnels beneath the surface and leave clay jars filled with nitroglycerin under the foundations of my enemies.

Today’s late day recovery was impressive and should spill into a bullish open for tomorrows trade. Moreover, I expect the dicksuckers in Europe will request and be granted a one day respite from the guillotine.

At the close of trade, my largest positions were WNR, FL and GSVC, with a dynamite infused TNA gamble.

I sold out of my TZA and bought TNA. common and calls.

Here I am, sitting here in my gold throne, adorned with high grade diamonds and buckets of rare/priceless painite, grandidierite and jeremejevite, unable to find places to park my cash. Truth be told, as is always the case, I am very much interested in going long here. However, at the end of the day, I mustn’t betray my disciplines, buying into names that are in danger of an EPS cut.

Most of the tech sector is in grave danger of having dramatic (no homo) cuts, as well as retail. I love the balance sheet and numbers coming out of DECK, but wouldn’t be surprised to see a 15% slash in expectations, based around the idea the world as we know it is down the shitter.

Commodity related stocks are risky, due to the pervasive deflation plaguing the world. Should we have a credit event, oil will be back to $30, swallowing whole companies amidst debilitating and crippling debt restructuring efforts.

My conundrum is serious, one that will need to be hashed out by my calculator brain, assisted by my fucking space capsule. At a minimum, TNA is an option, as well as a variety of diversified ETF’s.

As the market gets lit up like a roman candle, my largest position, WNR, is up and my TZA is running without shoes. My TZA calls are ridiculous, now +150% inside of a short week, so pardon me if I seem somewhat lackadaisical in my blogging efforts. While it’s true, my TBT position isn’t fairing too well. It’s also true, it was never a big one to begin with. I was sort of moonlighting with it, a dart in the dark, the proverbial walk through the sand littered with bouncing Betty landmines.

With regards to the refiners, this is all you need to know. Crack spreads are higher today, now above $35, and the WTI-Brent crude spread is at all time highs ($28.) Okay? So as the world burns, the underlying fundies for WNR have never been better.

My question to you is this: once trading gets back to normal and asset (asshat) managers look for places to park cash, where do you think they will put it, with regards to the energy sector?

Exactly.

I never besmirch my fellow investor for trading the tape in front of him. However, you can’t go around acting like you have a dogs brain either. For once, why don’t you get ahead of the curve and quit picking up the scraps?

Having said that, I will be closing out my TZA position today. I made a great deal of money in it for my personal/aggressive account and will start to scour the market for longs. With the Swiss Franc getting obliterated, thanks to the peg, I’d avoid gold as if it were the Black Death itself. It is entirely plausible to see the seemingly “risk off” assets targeted by the power elite, in order to funnel people back into stocks. Do not be fooled by price action. There is a bubble in non-risk assets, enveloping treasuries, gilts, bunds, francs, utility stocks and gold.

At the present, I still hold over 60% cash.

Is your seat death proof?

“I’m afraid you’re gonna have  to start getting scared, immediately.”

The lawsuit by the FHFA against our biggest banks is infectious and will likely destroy the very banks we bailed out in 2008. More importantly, the banks are now un-investable , until  there is a tobacco like settlement to ring fence the claims. This disgusting country will destroy itself, one fucking lawsuit at a time.

Since moral hazard was tossed out the window, everyone wants a piece of the action. Homeowners are suing BAC for LENDING THEM MONEY, at the peak of the housing market. Every institution that got burned on CDO’s will go after the banks, hoping to get a piece of the “settlement action,” all encouraged by the idiots in this administration, vis a vis the FHFA suit.

My guess, these suits will take years to settle, but will effectively hamstring the banks from lending money to you. The net result will be hilariously sad deflation and a broken banking system. I suspect the FHFA will win and several banks will fold or consolidate with other troubled banks. This is all happening at a time when the european banking system is in disarray and our economy is dying slowly. Frankly, I am besides myself at how incompetent the Obama administration is for letting this happen. I don’t care about QE3 anymore, since the fucking banking system is about to be led to its demise.

As an aside, I am tired of guidos mispronouncing the names of certain foods, like mozzarella, calamari and capicola. It’s not MUTZAREL or GALAMAR or GABBAGAUL you fucking idiots. You are not from the south of Italy, but the south of New Jersey, you peasant flee-bags.

Full disclosure, The PPT flagged OVERBOUGHT for the market on 8/29-8/31, when the SPY traded $121-$122.22. Out of respect for current PPT members, I will not reveal some of the things it is spitting out today. However, let’s just say, the robots have gone mad.

Swiss 3 and 6 month yields are NEGATIVE. Money is pouring in US treasuries, as well as German and UK bonds.Why? Because big money needs safety. They can’t leave it in the bank; the FDIC doesn’t secure big money, just the plebs. If you are a manager of a large amount of assets, you have no choice but to buy government bonds. They need the full faith and credit of a secure sovereign nation. Frankly, these sort of developments should scare you. There is an unknown here and the fucktards at CNBC do not know what it is.

Buying here means everything resolves itself over the long weekend and we’re back to snorting cocaine out of $10,000 bills again. The cynic in me keeps me from buying into that fairytale.

There is a major bubble being built in “non-risky” assets, ironically. Swiss Francs, government bonds, high grade corporate bonds, gold, silver, utilities, are being overrun with old money. I’ve been thinking about this for a long time now and have not figured it out. The push is coming from sovereign governments, insurance firms and monstrous asset management firms. Apparently, their economists believe we are heading into deep recession. That’s what the market is suggesting, in my opinion.

The bottom line: I am interested in buying several names down here, but will wait until Tuesday. I own WNR, GSVC and TBT for “risk on” trades and TZA for HORATIO.

This shit is giving me a headache. I need a drink.