The Futures Are Lower: Are You Scared?

I’ve never seen such a tape as docile as this one. In the best of markets, the pullbacks were always ferocious. I recall a half dozen times longing to throw myself into a lit fireplace, for the losses that I had endured at the hands of Mother Market. Yet, here I am, clearly without any lasting wounds to speak of, discussing the vagaries of this penis sucking market.

Now to the point: I’ve been spending greater lengths of time inside the 12631 trading room and intend to do so for the foreseeable future. It is a unique place where ideas are shared and money is to be had, run by ChessnWine and RaginCajun. Because there is demand, I am going to run a promotion soon, so you can see for yourself what you’re missing out on.

I’ve recently dedicated to changing iBankCoin back to the ways of the old, focused much more on actionable trades, talent in the markets, less so in the art of writing. As such, we’ve added The Option Addict, The Devil and RAUL to the staff. I will be inviting whoever I feel can offer some value to the readership, on a regular basis, also discarding them as quickly as I’ve procured them when their worth has been spent.

We are going to make a great deal of money in 2013. So help me god, if we do not, I will vaporize North Korea down to its last morsel of rice with my Orbital Space Cannon (OSJ).

NOTE: If ARG doesn’t do “the hundy roll” withing 30 days, I will castrate myself.

http://www.youtube.com/watch?v=RW3Y4OuTPHQ

I went long ANFI, a dubai based producer of rice and other such luxuries. It’s still below its ipo price and it’s based out of Dubai. Meaning: those circle heads have zero interest in looking like jackasses. With 25% of the shares sold short and half the world starving, I like my chances here long.

Top speculative pick is JRCC.

I have 4 stocks that give me a heterosexual erection right now: FRO, JRCC, WFR and AMBA.

The only sector that hasn’t bounce yet are the shippers. Forget about the fundies for a minutes and acknowledge this is a ball busting tape–designed to punish and maim bears to the end.

The following shipping stocks should be looked upon, expected to climb in the face of horrific day rates.

Why?

Because they can.

TRMD already exploded.

FRO is my favorite and here are the others:

EGLE

ULTR

VLCC

SB

DSX

NAT

I added to my AMBA position.

I started a position in WFR because solar is the new electricity.

It’s time to starve, America. The old farm bill expires on 9/30/13. Therefore the clowns over in DC need to pass a new one soon.

Even though farmers are enjoying record profits, the farmaid shall continue, through massive subsidies from the tax payers delivered to the cow jerkers over in farm country. The food stamp crowd, however, shall be starved to death, as one version of the new farm bill slashes $20 billion from the mouths of the unemployed destitute. Perhaps these chaps can shoplift or get jobs to provide food for their families. I believe upwards of 35 million people have the foodstamps, taking full advantage of the splendour that is America.

On this news, I expect farm related stocks to run. Fertilizer plays, as well as seed, should do well. Irrigation related stocks will climb and the food stamped crowd perish.

Here are some names. Select whichever ones you feel are strong and own them into the god damned farm bill passage.

AGU

MOS

LNN

MON

VMI

ANDE

BG

CF

NOTE: In case you’re wondering why there is a human like looking ape on the front page, it is because “The Fly” envisions large gorillas roaming about the corn fields, beating farmers to death with sticks.

Everyone I speak to is worried about the market. People who should know better are not just calling for a pullback, but a plunge. The reasoning is ridiculous, if you think about it: stocks are up a lot, therefore, they should trade down–a lot.

I don’t buy into that way of thinking, unless there is a bubble.

Stocks are up mightily, but there are no big bubbles. Housing related stocks are reasonably valued, as well as the banks and tech. As a matter of fact, these sectors are undervalued, based on historical precedence. So let’s take the crash scenario OFF the table and assume at some point the market will undergo a 10% correction.

When I bought IMMR today, some of my colleagues warned against it. They told me to wait and buy cheaper. However, to do that, I needed the market to fall or IMMR needed to reverse course and start heading lower, something it hasn’t done in months. It made no sense to wait because I liked the company and wanted to own some of it. Instead of waiting in the tall grass like a paradiddle, I initiated a 35% position, with the intent to buy more lower. Since most of my buying has yet to occur, it’s in my best interest to see the stock go lower.

That’s the difference between technical trading and trading based upon a thesis and fundamentals. I’m not interested in stop losses and the chart doesn’t matter to me. I will build a position in this stock and try to hold long enough to see them report a few quarters of better than expected earnings. That’s where the big money will be made, not trading between ranges.

To answer your question, pal: I don’t worry about markets correcting for too long. If and when it happens, I will deal with it, as I have dozens of times in the past. For now, the trend is decidedly up, even though the basic and common laws of seasonality, decency even, are calling for a sharp correction.

UPDATE: iBC welcomes RAUL back to the tabbed blogger collection of 2013.

I don’t get excited over many things, since I’ve lost all faith in humanity many years ago. As once tabbed blogger Danny would say, “I am stoked” to finally have Option Addict and The Devil on board, officially, into the iBC ranks. I’ve tried to get both of these bozos for years, and was always rebuffed. I’ve always imagined the both of them were too busy making love to a blow up sex doll, than to bother talking to the people at iBC.

The people demanded “The Devil”; therefore, the people got him.

So you know, I will be paying The Devil with the souls of my readers.

If you are a member of The PPT and have an interest in the 12631 trading room, I will be trading from there, live, for at least another week, if not more, providing a free schedule.

“The Devil’s” PAMT went gangbusters to the upside, along with his CALL and BKS. You people don’t understand how lucky you are to have access to this guy. I’ve known him from 2001, maybe 2002, and he’s always been plugged in. I don’t know where he gets his information; but it’s good.

I kicked out half of my MU and all of my USG. I still like them; but needed to raise cash to buy IMMR. I have plenty of dollars set aside to buy it in extreme size. I will consult with my Voodoo Physician tonight to make the stock trade lower manana. I want in.

I just saw Herb Greenberg back pedal out of his declaration from a few months ago that GMCR was done. After Einhorn announced his short position and the stock tanked, Herb was all over the company, pretty much declaring them dead in the water.

Lo and behold, after 50 points to the upside, he is rather mum. Instead he opted to discuss MNST, which is simply in an industry that is slowing. Let’s not forget that MNST has been a massive winner over the past decade.

How about OSTK or CMG? These are heavily shorted names that keep going higher too.

I am always amazed by the sheer brazen of these talking heads, who take it upon themselves to talk down stocks, search for mysteries–in their desperate, pathetic attempts to drum up some drama.

By the way, I sold out of USG and half of my MU, to make room for another name. Oh, RC and I nailed a MAKO trade inside 12631 today. I will be spending my trading days inside that room over the next few days.