Once Again: I’m a Coal Man

I was born inside of a coal mine. As a young lad growing up, I’d carve toys out from large rocks of coal, blacken my face to look like I was deep “in the hole” mining for rocks. Now, as a man on Wall Street, I am a coal man, yet again.

With the commodity rally well underway, I’ve sold out of my GG position and entered into a new position: CNX.

No one likes coal. They think it’s a reprehensible form of energy. People spit on miners from West Virginia, whenever afforded the chance. But I am suggesting to you, in a most emphatic way, coal shall rise again, unlike the morons from the south.

The Fed minutes revealed what i’ve been saying all along. They can’t raise rates if their inflation targets aren’t being met.

“Nevertheless, in part because of the risks to the outlook for economic activity and inflation, the committee decided that it was prudent to wait for additional information,” the Fed said in the minutes.

 

With that in mind, one has to wonder if the Fed was purposely luring shorts into the market in order to spring a trap, horse-kick those motherfuckers into the middle of an active volcano.

Commodities are the play here. An easy Fed means higher commodities and weaker dollars.

Lift off, motherfuckers.

The market wasn’t interested in staying down, so it went up. I’m gonna keep this simple for you. Buy oil. There is a short squeeze coming and you’ll want to get long these frac sand plays before they moonshoot higher.

HERETOFORE: SLCA is trading just 1x sales. This was a name that lavished its shareholders with gratuitous gains, just one year ago. Now it dwells in the sewers with the rats and vermin. I have news for you. The sand isn’t dead. It’s alive and it’s coming for vengeance. With 36% of the float sold short, a great balance sheet and solid business, this stock is poised for the $20’s.

As an aside, Bill Gross is suing PIMCO for all of their money, for being kicked out and disgraced. I hope he takes them to the woodshed and more.

Other frac sand plays include EMES, HCLP and FMSA.

This is something that wasn’t built into the big bear model: higher oil. The reason why HYG and many of the corporate bond etfs have been lower is due to the distressed condition of crude.

I am hard pressed to believe in the fantasy theory that oil is done going lower for good.

But it’s going higher now and that price action will quell the fears of bond holders who are worried about their principle.

Bottom line: the better the price action in  crude, the healthier this market will get. We need leadership and biotech just isn’t doing it for me these days.

Oil is the big story here, up another 1%. Should the dollar break lower, this market is going apeshit to the upside, led by crude.

GILD, an important market leader in big pharma, is attempting a reversal. Keep a close eye on it for overall sentiment for the biotechs.

Bears are on the run, all cowardly and shit, throwing up white towels. You can smell the desperation seeping through the computer screen. There is a destiny that must be manifested: 10% monthly gain in the NASDAQ. You might be able to delay the inevitable. But it is inevitable, friendo.

Offer no quarter to these modern day Hitlers. They get the black flag.

We’ve lost 30 NASDAQS so far,, likely due to the good Dr. Bernanke being on his book tour and not at the Citadel helm.

Most stocks are sucking wind this morning, save commodity related. For me this secondary of 26 million shares filed by Shake Shack this morning is just more of the same, a pattern that seems to be repeating itself over and over again.

Why bother trying to invest in these new ipos, when it’s clear as day they give zero fucks about their shareholders? I love the product, but find myself immensely disappointed this morning.

NFLX is higher. Go figure.

Out of all of my positions, I am really liking how this UNFI has been trading. It’s the leading distributor of organic foods and it tends to really outperform in October.

The fuckery really is real.

European markets are flat to up, with Nazi Germany being the strongest, after the ECB admitted that they couldn’t raise rates…ever.

The wheel-barrow dollar is trying to make a come back, once again weaker vs the euro. This, of course, lends confidence to crude markets, which are higher by 0.7%. Gold, however, is lower because it’s stupid.

U.S. futures are indicating a lower open by 0.3%. But that shit is as reliable as pissing in the wind and calling it a compass.

Apparently, a 4.5% move higher in the Shanghai wasn’t enough. I believe the whisper number for the clowns who whisper was for a 15% jump at the open. European and U.S. futures are off about 0.5%.

Gold is also down 0.45% and crude is higher by 0.4%. Both the NIKKEI and Hang Seng are off by almost 1%.

The people who control these markets are fucking assholes.

NOTE: iBankCoin will be launching a new design tonight. For a look at our previous designs, have a look at the Wayback Machine.

This would be one of the biggest mergers in tech history, upwards of $50 billion. Granted, it would be a merger of two losers, whose dominance in their respective markets have waned considerably in recent years. Nevertheless, it points to a much more important dynamic that is often forgotten about in this market: cash.

EMC has a market capitalization of $50 billion, meaning that any such deal could rank as one of the largest tech-industry mergers. Chip maker Avago Technologies Ltd.’s pending $37 billion agreement to buy Broadcom Corp. is the largest pure-tech takeover ever struck. There has been a raft of tech and other takeovers this year, and merger volume overall is running at a near-record pace. Still, market volatility could slow down the overall merger market and pose a threat to the EMC-Dell talks, one of the people cautioned.

There is a fuckload of cash on the sidelines waiting to buy back stock and to be put to use for mergers.

It’s also worthing noting that there is upwards of $2 trillion of US corporate cash parked overseas, due to our inane taxation laws. Should some sort of tax holiday get passed by our incompetent government, I suspect that would do wonders for market sentiment.

EMC is up 7.8% on the news.

Bet against “The Fly”, you lose the portfolio, house, cars, golf clubs and the kids. Life is about to foreclose on you. Markets want higher, not because the economy is great. No one gives a shit about the economy. Markets want higher because liquidity dictates it.

I finished the day +1.52%, straight bowling balling on you mother-llamas. My positions are somewhat subdued, all spread out, no one position more than 7% of assets.

All of my positions are listed inside Exodus, which by the way, absolutely nailed the market’s oversold ranges these past few months. If you’re not a member due to frugality, you’re doing yourself a grave injustice. Invest in your business and stop being a piker.

I cannot say if markets will soar again tomorrow. All I know is what I’ve been told (urinal shadow): the Nasdaq will increase by 10% in absolute value during the month of October, at which time Le Fly will sideline himself and prepare to stuff his face with gratuitous amounts of turkey.