We’re not going to have resolution until the Italian election “crisis” is resolved. I know how people think and they’re fixated on Berlusconi and his nazi plans. This morning’s bounce was great, but now it’s gone and I am once again in the red.
The housing and consumer confidence numbers were also great, but pale in comparison to the horrors that Berlusconi and his fascist thugs will inflict onto Europe.
Do you realize how stupid this whole process is? How one event can cause so many overly dramatic responses from the investor community?
It’s the nature of man to hoard and protect what is theirs. People want to hold onto gains and will use any excuse to protect them. As such, here were are, stuck in purgatory, being waited on by stupid men with Italian accents.
I’ve divested the majority of my VHC position, reducing it from 30% to a little less than 5%. With much of the proceeds, I bought BX, USG, BZH and APO–all doing woefully horrific in this meatball of a tape.
I’m short CCL (the broken toilet) and AG. However, I am leveraged out to my eyeballs, exposed to the market. My net long exposure is about 105%. I am not doing this simply because “stocks have to trade up until tax day.” You misinterpret my hyperbole.
The very basis of my bullish position is the undeniable resurgence in housing. The timing of my positioning is optimal, from a seasonality point of view.
I have two primary tools at my disposal.
1. Idea, information flow, intuition.
If I get the latter wrong, the former will be for naught.