They’re Trying to Lure Me Back In

I was going to do a piece about semiconductor foundry stocks, highlighting names like AMKR, TER, CDNS, WFR and RTEC. I was going to tie together the DRAM price spike with the manufactures of silicon wafers, the companies who package and then finally test them for yield. As of now, this is my favorite space, alongside the LED space and housing.

Ideally, the spike in DRAM prices will result in increased supply, in turn, companies who test and package wafers will stand to make money money off volume.

But I cannot get involved with yet another thesis play, as we enter the month of May. The market, yet again, is luring me back into its bosom, lavishing me with short term gains in degenerate stocks. The way this game typically ends is with me shattered to a thousand pieces, lamenting about how I should’ve listened to my own advice.

Well, I have no issues with allocating some spec capital to the above names. However, by no means will I dive back into this tape, naked and without protection.

As an aside, WETF had great numbers. The stock is going to $14 by summer.

Mandatory listening

It’s called DRAM memory.

Now go do some research and tell me who benefits from this sort of rise in spot prices.

Owning HDGE was appealing to me several weeks ago because of the technical state of their short positions. Since then, things have changed, as stocks like CLF, CMG and FSLT shot through the roof.

In other words, the managers at HDGE are imbeciles and cannot be trusted with my money. I will initiate short positions on my own.

NOTE: Cash position is about 50%.

I sold out for a 5% loss.

I do think we are in the late stages of the run. I do not expect a catastrophe, but a mere pullback, traditional in all bull markets. As such, I’ve designed my accounts to hold upwards of 35% cash, with a taste of HDGE in them– to the tune of 15%.

However, because of the aggressive nature of the moves we are seeing in small cap tech, I’ve been allocating resources there for the purposes of profit.

I am exclusive in the tech space, as I have zero interest in dealing with the daily machinations of the commodity sector, which is fraudulent on a wholesale level. Inside our premium service, there is a great screen on the front page blog that will isolate the types of stocks I am looking for–names like LEDS and RBCN–although I do not own LEDS at the moment.

I realize the commodity sector is doing quite well today and I wish all of you gamblers the best of luck in your never-ending efforts to time the bottom in silver just right. But at this stage in my life, in this rally, I cannot fall victim to scurrilous market moving news events again.

Top picks: Small cap tech.

Twenty six percent of the shares of RBCN are sold short. For a long time, there was a good reason to be short, as the price of Sapphire (Rubicon’s market) had continued to plummet. However, things are about to change around there parts and the sellers who made coin from the $9 to $8 range are going to the threatened very soon, in my humble estimation.

Grumbles regarding Sapphire being used for smartphone screens are making the rounds again, the ultimate solution to making your iPhone scratch proof. Don’t believe me. Take it from the analyst at Stern Agee who was saying RBCN was a sell from $35 all the way down.

He’s now bullish, citing capacity utilization expansion, looking for the stock to trade up to $12.

Previously, his price target was $7.

Spain’s unemployment rate soared to a new record of 27.2% of the workforce in the first quarter of 2013, according to official figures.

The total number of unemployed people in Spain has now passed the six million figure, although the rate of the increase has slowed.

That’s right folks, the Spanish unemployment rate is now upwards of 27%. The delightful spaniards are elated by this “situation” they find themselves in, able to stay at home and raise the kids while the government pays for the expense. Surely under such duress, the government must not adhere to the recent trends of austerity.

Why, I believe they ought to spend more, borrow more, in order to “finance the future.”

Or, instead of investing into their economy, maybe they should manipulate their stock market higher, so that the very rich will get richer and will be able to “absorb” higher tax rates to pay for the good families at home watching the tube, playing dominoes, making sex to one another.

As you were sashaying in and out between losing positions, “The Fly” reigned supreme, magnanimous above his peers scolded and scalded them with hot wine and words that transfixed into scissors to cut off the lips of the uninvited.

The market punished many today, but not Senor Tropicana, who smartly sold all of his GTAT position in favour for RBCN. His “wallboardness” went bizarrely profitable and everything else placed exactly where he wanted them.

In a world of hucksters, transvestites and terrorists, “The Fly” remains a constant for honour and integrity, manning the Orbital Space Cannon (OSC) for offensive purposes, keeping others true to their word by the marrow inside of their broken bones.

I do not care how I got here, just to where I am going.

Many have attempted to be “The Fly” by copying his swagger. But none of you suckers understand what it’s like to know the future and keep it to yourselves. It’s a burden that I carry, for the sake of mankind, handicapping you wheeled chair investors by demonstrating periods of mediocrity.

THE ERA OF LE FLY IS UPON YOU. GET OUT OF THE WAY, FOR HE ‘IRON LOTUS‘ YOUR HEADS AND TOSS YOUR TORSOS INTO FLAMING BARRELS OF GARBAGE.

I added to my RBCN position.

I’m very bullish on the solar sector right now, following numbers out of VECO and FSLR. Based upon guidance, I feel FSLR trades up to $80. AIXG warned and the stock is barely down.

Look, had you gone long solar and short gold/coal/silver when Obama got reelected, you’d be a very rich man today.

Have a looksy.

Solar

Gold Miners

The republicans lost their power in November and now they’re losing all of their money. The tea party folks are up to their ears in physical gold/silver and other pro-inflation plays. CRUSHED!

A cynic would suggest this is being done purposely to weaken the donor base. I do believe in coincidences. However, I do not believe in them when it comes to the government.

At any rate, pro-liberal stocks continue to do well. Under a welfare state, free lunches and free solar panels are all the rage. Step up to get your tax credits and prepare to pay egregious sums of money in capital gains taxes off your solar investments wins.

Top solar picks: RBCN, GTAT, YGE, WFR, SPWR, FSLR, JASO