MOAR WAR, MOAR QE

We were a bit frazzled yesterday over the specter of war. Howsoever, the moar war we get, the greater the accommodation from The Fed. Ask yourself, am I lying?

What was the net result from yesterday’s war talk?

You saw lower stock prices. I saw lower interest rates.

War equals flight to safety. What is safer than a US military base, backed by dollars and debt?

Exactly.

Do not fear war, but embrace it. It is exceedingly bullish for stocks.

In other news, TIM COOK lost again. Samsung announced their smart watch today, beating AAPL to the punch. I am eagerly waiting to explore this device and see if IMMR’s haptics is embedded in it.

With today’s purchase of ANGI, I am less than 10% cash.

I started a position in ANGI. I’ve been waiting very patiently for an entry.

Unbelievably depressing housing numbers!

How can the Fed back off with numbers like this? I think it’s fair to say, we’re addicted to cheap money and fast drugs. Nonetheless, we’re bouncing here, with stocks stretching out their legs–looking for another run higher.

I want to show you something. Yesterday, The PPT registered its lowest Overall Hybrid score since 2011. The score was so low, it gave me memories of the good old days of 2009 and 2010, when the oversold signal made me 900% on my money, playing triple inverse ETFs and options.

Here are all scores, life to date, under 2.40, affixed to a chart of the SPY.

This is a very high probability trade, as far as I’m concerned. I did raise a little cash yesterday, selling out of the rest of my DDD position. I am eager to invest the money into something on the move higher.

In other news, there’s been an overwhelming response to After Hour’s with The Option Addict. Today is the last day of the free trial. If you want to know his methods and how to use them in the options market, don’t miss today’s show.

Because of your response, I will extend the 15% discount on membership until 5pm today. Do not ever say Le Fly isn’t generous.

I know the market was rough today and you’re all worried silly about our tax dollars being spent on gratuitous usage of the nation’s cruise missile supply. However, the market isn’t going to bend to your caprices. Therefore, get your head from out of the sand and pay attention!

With that being said, iBankCoin is proud to present AFTER HOURS with THE OPTION ADDICT, a new premium service from the godly folks who dwell here. Inside, you will find a vast store of knowledge about trends, specific to the option market. After each trading session (or most), Jeff will provide a webinar, which will be used to answer your questions. There is a chat room to loiter in, drink some bottles of champagne and generally participate in unchecked debauchery.

And, most important for you, the prospective internet leech, we’ve opened this great hall to you for free, at least for the next two days. It’s also worth noting, the first 100 members will receive a steep discount, amounting to more than 15% off the annual cost. Naturally, some of your peers, the reader class, have acted upon this obscene generosity and have already signed up, leaving the lot of you with less than 30 spots remaining.

No fears, however, since men of our stature do not trifle with discounts or coupons. Men like us buy what we want, when we want it.

Having said all of that, I expect every one reading this post to at least try the free trial, accepting the unbridled gifts that I set before you. It’s the very least you could do, after considering all that I provide for you, the unwashed, free from charge.

NOTE: There isn’t any need to thank me, just behave and be well.

Update: Here’s a recording of the After Hours with Option Addict daily webinar from earlier today:

War is always a black swan event, one that serves as a monkey wrench in the wall street cog. I can’t say I’m surprised about August difficulties. It is wall street tradition to struggle through the months of August through October.

These are the months that try investors temperament and staying power. Before you know it, Christmas season will be here and we’ll all be popping champagne corks again.

For now, there are several cross currents we need to watch. The first being the most important: interest rates. With the Syria news, rates have gone lower, a good thing! The other problem is Syria, which if you think about it is a non-event. We’ll launch 500 cruise missiles, send over a few bombers and call it a day. I doubt there will be any ground combat to worry about.

People are finding reasons to sell. If you are smart, you will keep a wish list of stocks nearby and watch them carefully. Free up some cash in non-core names, trades gone awry, and buy your wish list, as they come in.

As traders/investors, that’s all we can do now. We can either hedge and risk missing out on a huge bounce, or bide our time and position for the next 3-6 months.

Go eat a sandwich.

NOTE: Today we launched After Hours with The Option Addict. Being that the market is in flux, I cannot think of a better time to showcase Jeff’s incredible skills. Be sure to sign up for our two day free trial to see if it meshes with your style. Just know, the first 100 sign ups will receive a significant discount.

From sewer hole to penthouse inside of one month is the story of the once famed ‘Cement Head. (CH)’

Just one month ago, the good Senator was living inside of a box, outside of a sewer hole. Now, following a 20-50% run in his vast gold and silver holdings, The Cement Headed One is living high off the hog, rich beyond comprehension. I suspect his blogging activities were stymied due to his local SBUX restricting him from loitering around for free internet. But things have changed recently and the precious is back.

With that, very soon, it is possible that his internet service will be restored. God can only pray for these things to occur.

With war, and other such niceties, gold and silver are attractive. Attractive for hard currency lovers of course, not so much for me and people of my ilk.

One thing to focus on is the Brent/WTI spread. Should war occur, on a largess scale, I will buy the refiners, ad hoc, without even looking at their stock prices.

The Syrian civil war is the messiest middle eastern conflict in centuries. Therefore, as a war-like people, we must dip out beaks into it. This reminds me of the movie, The Outsiders, when Matt Dillon came running onto the field of battle screaming ‘no one starts a rumble without me.’

I don’t know when America became the world police. And I find it sort of ironic that it happened under the leadership of a noble peace prize winner. One thing is for certain, it’s bullish for stocks; bearish for the life expectancy for the people in Syria.

Shippers, gold and silver are the play off this conflict. As much as I hate gold and silver, it’s back with a vengeance. As for the shippers, I don’t see how a Syrian war affects the oil trade. Nonetheless, GNK, FRO, SBLK and VLCCF are pressing higher.

AMBA and YELP are higher. Generally speaking, I am not having a terrible day.

Brace yourselves for more volatility and stress test your margins.

This just out. Morgan Stanley cites Seeking Alpha article induced panic sell off as buying opportunity, maintains $18 price target.

This will be my favorite asshat award ever.

When you sit down and concoct an investment plan, everything seems so perfect, until you actually put said plan into action. Such is the case with my current predicament, regarding AMBA.

I’ve concluded that I was going to ‘try’ to hold 3 core positions for  “awhile”, financed through my depravity of short term trading opportunities. In other words, I planned to own 12 stocks, trading around just 3–that would remain, no matter what. This way, price fluctuations for my core would be rendered immaterial, as I’d be building up my asset base through timely trades. As of late, I’ve closed out multiple winning trades. Just today I booked a very large gain by selling half of my DDD position. It was, in fact, my 2nd largest position this morning. With some of my proceeds, I started a position in TRLA and averaged down in AMBA.

Here is my conundrum.

I’ve been averaging down in AMBA since $16.66 (god damn omen) and the price is following the path of another large position of mine, IMMR. Both have grossly underperformed. My asset performance has been buoyed by YELP, gains in ONVO, DDD, CXO, OPEN and WIT. And, I also sold 30% of my IMMR position north of $14.30, which helped.

But here I am, chasing down a non-core position down the drain into earnings. Am I mad, or onto something big?

There hasn’t been any news, just rumours and innuendo. Of course one must be mindful of the old saying “where there’s smoke, there’s fire.” However, aside from the Seeking Alpha drivel, every analyst covering the stock, namely the guy from Deutsch Bank (Ross Seymore), who happens to be a very good analyst, loves the stock and feels it’s worth $20. I’ve made up my mind, have you, and I am riding this sucker through earnings, like an olde fashioned automobile made from dynamite sticks heading for the sun.

The curious case of IMMR is equally vexing, if not infuriating. I’ve determined that I am going to stick with certain names, come hell or high water, regardless of imminent peril and financial hazard. The audible here, of course, is AMBA, an unplanned 4th core position, which was thrusted upon me like the north thrusted themselves upon the peace loving confederates.

My year to date gains still stand in the high 30% range, and I didn’t just humiliate myself by selling out of 39 million shares of JCP at the lows.

So, life isn’t that bad. I’ll manage through it.

I was taken down a notch today, thanks to the compression in the shares of AMBA. Also, following John Kerry’s war against Syria speech, stocks declined, further depressing my intra-day profit and loss statement.

No worries. Today was the lightest volume day of the year and Seeking Alpha is an online magazine run by social misfits.

If it weren’t for my huge DDD win, I would’ve been scalped today.

I am going to end up down a little less than 1%, vexed like a bull being teased by a clown dressed in a red mini-skirt.

The good news is, however, war is on the horizon, yet again.

Top picks: IMMR, POWI, YELP