This is Easy

If we don’t get a flush out in stocks, take the month of August off. There is no reason to get long ahead of the Fed meeting, while Spanish and Italian yields are so high and US treasuries are so low. The bond market will let you know when it’s time to buy stocks.

Watch TLT closely and avoid any and all earnings plays, unless you have an edge. You know I love YELP and feel they should smash earnings. However, in light of the recent debacles in social media earnings calls, I have no interest in rolling the dice here. The stock is more than $5 below my sale price, but is still unattractive due to social media multiple compression.

What does that mean?

Well, this sector is literally the worst sector in the market, even worse than coal. Investors aren’t willing to pay up for these stocks. Therefore, PE and P/S ratios are coming the fuck lower, in a seamless, uninterrupted, manner. As sure as I am sitting here in this luxurious Bo Concept chair, the social media space will eventually bottom out and offer spectacular returns to patient investors, but not yet.

Moving on, I still like LNN and EXK here, but should have sold EXK when The PPT flagged it as “overbought” the other day. Nevertheless, both stocks should trend higher over the next 3 months.

Howsoever, based upon the untenable laws of mathematics, my favourite pick here is VXX.