Flashback: Mr. DevilDog

This one goes out to the Armageddon crowd. Keep it frosty.

For bounce week, I expect to see several days of gains in the market, effectively putting everyone in the meat grinder, both long and short. Nothing is ever easy. And, for the most part, the bears have had their way for the past 6 weeks. It’s time for them to lose some sleep and digit in their bullshit brokerage accounts.

The initial pop will be found in extreme oversold stocks, like Chinese burritos and many of the names (JCP) that I’ve highlighted here over the past few days. Then we will move on to big industrial and stocks with large short positions. You should look towards names with large short positions, coming off the 200 day, approaching the 50. After that initial spike, should we continue higher, look towards names approaching the 20.

Let it be known, another day like today and The PPT will be overbought again. So, from my standpoint, I’d like to see a tepid tape tomorrow, followed by a BROKEN ROBOT, rip your head off Thursday and Friday.

For the day, I was up 4.1%

After several weeks of beatings, getting kicked down grimy stairs, “The Fly” got up and took his local teleporter back up to his fucking spaceship. I cannot make these things up, as my positions are all registered inside of The PPT. As we speak, I am up nearly 5% for the day. I am positive many of you deformed creatures dressed in burlap will cry bullshit upon such claims.

The core of my positions are the following:

WNR, CLF, OXY, ATPG, CVI, CLR, OPEN, TNAV, ALJ and TNA.

Now tell me, how am I not up nearly 5%?

Of course there is still much work to be done. This is “bounce week” and I intend to make up the majority of my losses inside of a few short trading days, reposition, then chop this market up into small little pieces and then eat it. As you well know, The PPT has been flagging OVERSOLD for about a week now, registering a record amount of signals without a decent bounce. Based upon the past, we are in for a sharp reflex rally higher.

Hence the term: I have taken the teleporter up and now have you in my scopes, firing laser beams and dropping garbage all over your bullshit lawn.

NOTE: I have not sold a single share. I added a new position in BGC and to an existing position, OPEN.

Let me remind you of something of great importance, regarding the refiners: business has never been better. That’s right, despite the selling, the underlying businesses are running at RECORD margins.

Look at WNR. They get most of their crude from Eagleford shale and Cushings. Are you aware of the discount between WTI and Brent? Right now it’s nearing $22, an all time high. Are you familiar with the term “crack spreads”? Essentially, that’s the margin the refiners garner by selling their refined product. Well, that’s up another 5% today, nearing $32, another all time high.

The sector has been sold off for one reason and one reason alone: idiots are pricing in a recession. Not only are idiots pricing in a recession, they are surmising people will not drive cars or fly in airplanes or heat their homes either. The idea that demand destruct is around the corner, whilst these spreads are screaming the contrary, is preposterous.

I am heavily long WNR, CVI and some ALJ. If I was cash rich and light in the sector, right now, I’d be buying with two fists clenched, screaming “fuck the world.”

My favorites are WNR, CVI, ALJ and HOC.

I bought 5,000 BGC- new position.

Disclaimer: If you buy BGC because of this post, your head may get caught in a vice. And, you may lose money.

I invite all of you to enter the vice, so that I may squeeze you. I’d also like all of the Economics majors to come out from the woodwork to explain how core retail sales shot up by 6.1% this month, if I may be sold bold. Everyone is running around with their pants down, screaming about Greece and Portugal, Greece and Portugal. Well I have news for you: GREECE HASN’T BEEN RELEVANT SINCE ALEXANDER THE GREAT, you fucking idiots.

Greece and Portugal can go fuck themselves on a spindle. Love the food, enjoy the people, but fuck the nations.

You’re all very studious over there, on your computer box, warning people of doom. The problem with people is they want to be special. Everyone wants to be a super star. They want to make the big calls, get tonnes of notoriety and have great whores suck their cocks for being so “awesome and amazing.” The reality is, and I am very sorry to inform you of this: most people are cannon fodder. They are nothing more than a series of digits affixed to a government name. The word mediocrity comes to mind, when reading the shit strewn across the web-o-spehere.

As for “The Fly”: he is extraordinary, always thinking outside the box, pissing in other peoples apple cider.

Enjoy today’s squeeze.

In light of Chinese inflation data, for some oddball reason, futures are screaming to the upside, as well as Asian markets. I’ve been running some scans in The PPT all night (think mad scientist in the lab), scouring the market for some good ideas. If I come across as a man full of confidence and with lots of disposable income, it’s because I am, indeud. Moreover, I have money to put to work.

So, let’s have at it.

The criteria was to find stocks down 10% or more over the past two weeks. On top of that, I asked for a minimum fundamental score of 3 (the lowest score that is rated “buy” is 3), coupled with a minimum market cap of 100 million and within -5% to +5% of the 200 day moving average.

After perusing that screen, currently featured inside The PPT, here are some names that interest me a great deal.

ADTN
JDSU
TLAB
BGC
CBG
DKS
DLX
IR
JOSB
CLR
OPEN

[youtube:http://www.youtube.com/watch?v=pgUxFb3lGUY 616 500]

We all know today’s tape is weak, even though we are supposed to bounce hard. We all know there has been significant damage done to the indices and momentum stocks. Hedge fund managers are getting their fucking asses kicked, stuck inside bank stocks—which are also called “fag boxes” in many parts of the country. We know have gone through these sort of tapes before and understand how to trade them, some more than others.

Let’s analyze the situation that’s in front of us and make predictions, based on reality, not some bearshitter in a blue blazer fantasy.

Will Greece be allowed to fail?

The answer, based upon recent and past events, is no.

Will American states get Federal funding?

Yes.

Will the Fed ignore its mandate to spur growth?

No.

How does Greece, the American states get funded and the Federal Reserve help spur growth?

Print more money.

It’s that simple, folks. At this stage, the ambiguous unknown, people are waiting for the answers. Hence, the market is selling off, based upon heavy hitters winding up shop going into summer and retail fuckers getting scared shitless due to headline risk. Only plebs respond to current news. I am interested in future news and how it might affect stock prices.

My next question to you is: Can you stand the pain?

If not, be prepared to endure lots of volatility, as the weaker hands get flushed out. Corrections are always painful. Position yourself to stay in the game and when the worm turns, you will make up all of your losses, AND MORE.

I am going out on a limb here, declaring “bounce week” to being with today’s trading. If you are looking to reposition into this tape, lucky to have avoided the recent sell off, do not be tempted by small cap garbagio. There are plenty of good quality names, at a discount, for the picking.

Names like FLS, CLF, OXY, JNPR, CMI or even JCP interest me.

In the event the market continues to get flushed, the damage to your portfolio will be less than heinous, if long some big cap names. Should you opt for a smaller cap portfolio and we continue to spiral, I wish you Godspeed and farewell.