Raising Cash

I am not bearish, just cautious in light of the bubble stocks imploding again. I told you it was a dead cat bounce. Right now the carnage is limited to tech, with biotech still performing. Nevertheless, I was +25% on my XON bottom shares, the first half of my purchase, so I took profits.

With the proceeds, I remain vigilant, on the look out for moar opportunities.

FYI: Those dollars will either be allocated towards a GARP stock or speculative trade.

Feel free to frolic amongst yourselves.

Let’s not be disillusioned by what we are seeing in the high beta, money losing, tech space. Sure, the gains have been bountiful and it almost feels like 2013; but it’s not. Let the dastardly after hours pin less hand grenade trading in SPLK and BLOX serve as a reminder to you. If you’re playing this market, you need to remember two things.

1. Never hold a money losing tech stocks into earnings.

2. Limit your exposure to money losing tech stocks to just 20% of your overall portfolio.

The biggest winners will be in the companies who make money, period, end of discussion. Case in point: my semi-annually managed portfolio of growth stocks is now +0.4% for the year.  Had NUS not been cut in half, I’d probably be up 10%. I will be updating that GARP portfolio over the weekend, which will remain static, designed for longer term investors, for the remainder of 2014. I intend to put my best efforts into the selection process, comprising of 15 growth stocks of the undervalued varietal.

I made over 2% during today’s session, reducing my year to date losses to mid 27%, which is a full 10% off the lows. Should I get down to the low 20’s, I will likely take a more aggressive approach to this market, in order to expedite my current predicament.

This rally is dated till Alibaba.

I am in it to win it. I added to my position.

Silver stocks are sharply higher today.

I believe 99.9% of you scoffed at my silvery suggestion last night. Granted, I didn’t buy any, as my money is tied up in other things. But the point remains: the unwashed masses are better off eating chickened mcnuggets than offering financial advice on the internets.

Well not technically, but the GDP numbers came in at -1%. God willing, Q2 will come in negative too, paving the way for even higher stock prices. Don’t even attempt to try to understand how futures are higher on this news, as up is down and down is up. It’s been this way for half a decade. All I know is this: Tupac Shakur was a great man.

You have to read the responding police officers account of Tupac’s final moments on this god forsaken planet.

“I grab the car door and I’m trying to open it, but I can’t get it open,” he says. “[Knight] keeps coming up on my back, so I’m pointing my gun at him. I’m pointing it at the car. I’m yelling, ‘You guys lay down! And you, get the f**k away from me!’ And every time I’d point the gun at him, he’d back off and even lift his hands up, like ‘All right! All right!’ So I’d go back to the car, and here he comes again. I’m like, ‘F**ker, back off!’ This guy is huge, and the whole time he’s running around at the scene, he’s gushing blood from his head. Gushing blood! I mean the guy had clearly been hit in the head, but he had all his faculties. I couldn’t believe he was running around and doing what he was doing, yelling back and forth.”

Carroll says when he finally was able to open the door, Shakur’s limp body fell out of the vehicle, “like he was leaning against the door.”

“So I grabbed him with my left arm, and he falls into me, and I’ve still got my gun in the other hand,” he continues. “He’s covered with blood, and I immediately notice that the guy’s got a ton of gold on — a necklace and other jewelry — and all of the gold is covered in blood. That has always left an image in my mind. . . After I pulled him out, Suge starts yelling at him, ‘Pac! Pac!’ And he just keeps yelling it. And the guy I’m holding is trying to yell back at him. He’s sitting up and he’s struggling to get the words out, but he can’t really do it. And as Suge is yelling ‘Pac!,’ I look down and I realize that this is Tupac Shakur.”

Carroll says he attempted to get a “dying declaration” of a potential suspect from Shakur, but the rapper was ignoring him at first.

“And then I saw in his face, in his movements, all of a sudden in the snap of a finger, he changed,” he says. “And he went from struggling to speak, being noncooperative, to an ‘I’m at peace’ type of thing. Just like that. . . He went from fighting to ‘I can’t do it.’ And when he made that transition, he looked at me, and he’s looking right in my eyes. And that’s when I looked at him and said one more time, ‘Who shot you?’. . . He looked at me and he took a breath to get the words out, and he opened his mouth, and I thought I was actually going to get some cooperation. And then the words came out: ‘F**k you.’ After that, he started gurgling and slipping out of consciousness.”

In other news, TSN is bidding for HSH. It appears there will be a bidding war for that pathetic company , between Tyson and Pilgrim’s Pride. I find it interesting how the suppliers of food are doing decidedly better than the grocers. I can only surmise the producers are successfully passing cost along to the grocers and the grocers are unable to raise prices at the stores.

Bottom line: heading into today’s trade I was optimistic about further gains in JAZZ and XON. After these deliciously negative GDP numbers, I am even MOAR optimistic.

Costanza trade-style.

Several weeks ago I warned the canaille of impending doom to be savagely imposed upon gold and silver traders. These men were prancing about the market place without shield, sword-less. Since then, these slack-jawed catamites have beeb arrested, left to die in a catatonic state.

When someone perishes on Wall Street, opportunity presents itself for the vultures safely perched above, watching scenes of tragedy unravel.

I give you “Death by Silver.”

Gold and silver are now trading inverse to Application Software stocks, as unbelievably stupid as that might seem. The layman, you, your friends, parents and smartest relatives, are victims of algorthimic order flow, originated from the JP Morgan Bank vaults, located 5 floors below 45 Wall. This is specifically designed to subtract dollars from your brokerage accounts, a modern day “planned shrinkage” assault upon the Third Estate.

I am sure by now, I’ve lost 95% of the readership. Let me get to the point.

Here are a few silver stocks that might be worth buying for a bounce, and their 2 week percentage losses.

CDE -16%
SSRI -16%
MGN -14.4%
EXK -12%

Gold

TRX -17%
DRD -17%
HMY -14%
SA -9.5%
IAG -9.3%

Separately, all coal stocks appear to be headed into the toilet bowl, down into the sewers, with most names off by 15-25% in the last two weeks alone.

I know the market appears to be constructive now, especially since we’re near new highs and all of the high beta stocks are rallying again. However, as of now, we are simply dead cat bouncing. The reason why I can say that with absolute certainty is because it’s true. The biggest losers over the past three months are now the biggest winners. All you have to do is screen for stocks down more than 30% over the past 3 months, and layer atop of that some technical factors and price action magic and voila: you have yourself a nice winner.

Be on guard for false breakouts.

As of now, I am still in the camp that this is simply a respite, along the lines of 2000. This is the bounce after the dip. We will rally until late June, then sell off through July. The market will, once again, rally in August, topping out in September, then enter a most horrendous and miserable Samsonite Hamburgalar bear market through December.

I can only hope to recover half of my losses, realistically. Perhaps by August I will be in a position to short stocks and double my gains as the market vomits on itself, salvaging my year. There is a long road ahead of us. Try not to let your weak-minded emotions get in the way of seeing things clearly.

NOTE: The PPT‘s 7 day hold on the QQQ’s, which was closed out yesterday, was sublime.

The only way to overcome a massive deficit

Congratulations to me: my year to date losses are now just 29%.

Thanks to the move in XON, I’ve cut down my losses to under 30%, which is entirely woeful by any standard north of Mexico. Go ahead and short the markets. Fall victim to your own idiocy, tricked again by the action in TLT. Let me remind you that TLT is going up because of foreign money and not because we are heading toward catastrophe.

Right now I am focused on two stocks: XON and JAZZ. I am looking over my lists (extra Santa) for new stocks to buy, ones that go higher and make people rich. As soon as I figure this stuff out, you’ll be the last to know.

Ciao.