Fly Buy: $SCTY

I bought a small position in SCTY, further extending my leverage.

The momentum is back. Once again, the solar and 3-D printing space is leading the way higher. I am sure you cannot find indexes dedicated to these industries anywhere but iBC. At the moment, both solar and 3-D printing are up nearly 2% for the day, with gains in ASTI, ENPH, LDK, CSUN, CIMT and XONE. I know, it’s hard to buy into stocks that have already run higher. The miser in me wants to short them or buy into a sector that is ‘cheap’ and overlooked. The fact of the matter is, more often than not, that’s a huge mistake.

Things in motion tend to stay in motion, meaning: buy the momentum. You are more likely to bank coin by buyingh the 52 week high list than the 52 week low list, yet I find many amateurs chasing precious metals, coal and steel stocks into the dirt. Let me be clear: there’s nothing with trying your luck with some dogs. But some people dedicate their entire investment philosophy around it. I am here to tell you, in no uncertain terms, you, sir, are an amateur.

You want some actionable ideas. How about some good old fashioned short squeezes?

I am 120% long, so I won’t be buying anything without selling something first. But if I was in the market for something exciting, I’d be looking at the following 5 names.

ENPH
HNR
NGVC
SCTY
HLF (KILL BILL!)

I know some of you call into question the algorithms touted here, almost on a daily basis. You mumble to yourself “how accurate, really, is this stupid signal he is always yapping about?”

First of all, what is a Hybrid Oversold Signal?

The word “hybrid” represents the blend of both technical and fundamental data. Every stock inside of The PPT is measured by 5 technical and fundamental factors, thew blended together using my ‘top secret’ formula to derive a hybrid score. When that score is low enough, it triggers and OVERSOLD signal. As soon as the signal is triggered, it is tracked for a period of 10 trading days and the results are displayed, for every stock and ETF in the system. Well, for ETFs, since they don’t have fundamentals, only the technical score is tracked.

The overall hybrid, essentially, is a composite of all of the scores. When the selling pressure goes ‘full retard’, more often than not, the overall hybrid triggers OS, due to the inherent oversold nature of the constituent securities.

The overall hybrid oversold and overbought signals are tracked for accuracy and the % gain or loss over the 10 day period it is tracked.

Here are the results over 3,6,12 and 36 month periods.

3 month

6 month

12 month

36 month

I am sure it’s just an odd coincidence.

I closed out Friday 120% long, exercising leverage because I felt “nothing could go wrong.”

In case you’re wondering, no one is doing it like me now. I am at new highs, painting a masterpiece in real time. Have a look at some of my work.

With Friday’s melt up in stocks and subsequent melt down in bonds, I suspect there will be extreme volatility and ‘ultra-violence’ next week (no Egypt). All of the bond gimps are gonna get checked out of their positions. Money is clearly flowing into equities; but that will not last forever.

Once the 10 yr breaches 3%, panic will ensue. Why invest in a stock with a 3% dividend when you could buy some rapidly depreciating government paper?

I think I answered my own question.

I think the market will trend higher in July, then drop in August and September. There will be a sharp bounce in bonds, but not until August–traditionally an exceptionally strong month for TLT.

Eventually the japery will end and buccaneers will force markets sharply lower. But predictions are nothing more than leaves bustling in the wind. They look nice for a short duration, then people forget about them and continue to live their lives. Take everything with a grain of salt.

Most of the time, I view life superciliously, as I am keen to the game and know how it works. It’s true what they say: with age comes wisdom. When I was a young pleb, like many of you, I viewed things sardonically, as it suited my rebellious demeanor. I’ve never been one to respect rules, as most are concocted by jackasses with a sub-human moral compass.

Back to stocks: I like AMBA and of course IMMR into a strong tape. I have an animalistic appetite for IMMR on dips. The solars are– completely– in a world of their own. SOL wants higher, no doubt about it. With higher rates comes bigger margins for banks, particularly for the regionals. I like FITB, HBAN and SBNY.

My largest positions are IMMR, GS and O.

[youtube:http://www.youtube.com/watch?v=fQ7QfOby3Vs 603 500]

The damn economy got better. The better than expected jobs reported only lends to the idea that rates should go higher. Who released that report? He should be fired!

Anything with a yield is getting hit, including my REIT, ticker O. Housing is going to get penalized, based upon the theory that higher rates means no one buys homes anymore. And, finally, 10 and 30 year bonds will get smashed. Have a look at TLT, then get back to me–pal.

I wish there was something positive to say, aside from the fact that banks make even more money with a higher rate environment, thanks to the ‘spread.’ But, all in all, this is a disappointment for me.

We should still make some money today, since we missed out on the massive Draghi-inspired rally on the 4th. But there will be nothing cartoonish about it. I expect a mixed market, one that throws some investors through the windshield, while others chill in an air conditioned cabin listening to the latest Rick Ross rap song.

I might make some changes today. Stay tuned.

I don’t find it to be useful to discuss news anymore, especially when it pertains to stocks. The pattern has repeated itself so often, I feel like a fool– attributing some “news event” as a catalyst that seemingly and magically boosts stocks higher. Stocks trade higher because they’re mandated to do so. The game is rigged and in our favour. US market are outperforming all other markets. Our wars are going according to plan and we’ve managed to upset almost every single nation in the middle east, without blinking an eye. So much for worrying about lighting a match inside of a powder keg.

Ladies and gentleman of the interwebs: S&P futures are up more than 15. The Dow is scheduled (British accent) to open up more than 140 points. This isn’t a game anymore. It never has been a game, even though a great lot of you treat it as one.

I stand to make pornographic gains at the onset of trading.

A great man once said: “It’s gonna be a hot summer.”

NOTE: As you white trashed out losers suck down budweiser cans and blow your arms off with blockbusters, choking on overcooked beef, Le Fly is drinking his usual Earl Grey, listening to a little Glass.

Have a listen, if you dare to be so bold, yet distinguished.
[youtube:http://www.youtube.com/watch?v=q2-QkG8Zkh4 603 500]

Try not to blow your fingers off, tossing those m-80’s around the neighborhood. I once knew a girl who fell victim to that, blew her fingers clean off her hand. Such a shame, being that she was a pretty girl.

We all made money and have positioned to profit from any and all rebellions in the middle east. Let’s not go back and forth about the markets for the next 24 hours, ok?

It’s time to get “our white trash on” and inebriate ourselves to the point of being poisoned.

Life for most is very short, unlike The Fly who is immortal. So make the best of it and never, ever, let inhibitions infect your psyche. We are all entitled to magnanimous success and spoils.

When I was a young punk broker, pumping out 100k per mo in commissions, unhappy at my firm because I felt “neglected”, my old CEO gave me a piece of advice that sticks with me to this day. He said “Fly, the squeaky wheel gets the oil.”

Life isn’t going to come to you. You need to go and get it.

Drive safely.

The Arab Spring continues, redundantly, yet again!

CNBC is reporting a military coup is ‘in progress’, with the arrest of several players inside of the psychopath Morsi administration. Naturally, this is ‘good news’, as war always is. Moreso, the carnival clowns who were ruling Egypt with a Koran will soon be under arrest and sent to receive their virgin wives.

I told you Portugal was a non-factor. Now how many suckers bought into the futures market, going short, thinking the US was about to nosedive? Whoever did, especially when the SPY futs were down 12, now find themselves floating around in outerspace, locked in a ‘fagbox‘.

I am 120% invested, long, without a care in the world. I told you yesterday, the market isn’t chasing higher, but simply resting or “taking it easy” ahead of the 4th of July festivities. Mark my words, we are setting up for another leg up.

The FRO is running again. There will be winners and losers in this Egyptian unrest situation. Just know, FRO doesn’t bother taking stupid crude from the middle east and delivering it to China or the US. PFFFFFF. There isn’t any money in that, believe it or not. They prefer to do business with the Africanus, a much more pleasurable route, albeit a money loser as well. So perhaps the specter of the Suez canal closing has people in the bit of a frenzy to own oil tanker stocks? Perhaps.

However, they’d be remiss to believe this run up is sustainable. I am a net seller of FRO into what I consider to be “another gift.” It’s not that I do not like FRO. It’s just that the time and the place for it to really go higher isn’t now.

In other news, AAPL looks encouraging and OCZ is always of interest to me. I’ve been thinking about buying into this stock for weeks now. With 40% of its cap in cash, no debt, and its peer, STEC, being bought out at a 100% premium, OCZ looks intriguing.

For now, top picks are IMMR, O and FWM.