THE BEARS ARE IN HELL

All of the panic and strife from two weeks ago has withered away, like pixie dust in the wind with the profits of professional short sellers. The stocks that everyone was afraid to own are now ownable, bankable companies, worthy of your attention. Look at FEYE, DWRE and NOW screaming higher.

The good folks over at GOOG have decided that they do not like SALE’s coupons and have prohibited people from finding it on the internet, in favor of COUP’s coupons. While some people might say “that’s punitive, anti-competitive and generally unfair.” I say to them, and anyone else, the internet belongs to Google, so shut up.

Most of my stocks are higher today and I am back on a profitable path, but there is a cost. No longer am I able to toss around millions of dollars into whims, play around like some animal in a field of garbage. I am much more selective now, imposing rules and order to my trading practices. Believe you me, there are so many degenerate stocks that I wish to own now, but I simply cannot afford to buy them. Until I make back 10% from my -32% loss, I am in the proverbial ‘fag box.’ In case you’re wondering, I am still down about 32%, so there’s nothing to get excited about just yet.

HOWEVER, I need  to remind you of the imperial powers of The PPT, flagging  the market to be oversold on 5/15, when the SPY was at $187.4. On that day, I purchased QQQ, as part of my new trading strategy, at $87.4. I will sell it  on the 7th day, which is Tuesday, most likely for a 3-4% profit.

Over the past 12 months, our mean reversion algorithm is 100% accurate, 10-0, over a 10 day hold. Over the lifetime of this algorithm (2008), it clocks in at 85% accurate.

To get ahead in the market, I do not need the holy grail. All I need is an edge. This provides me with that and I’d be remiss if I didn’t take full advantage of the tools god has bestowed upon me.

Amen.

https://www.youtube.com/watch?v=lF7C8NFzAGQ