Quantitative Fatigue

It appears the euphoria, post QE3 announcement, is over. Too many people went long, thinking it was straight up without pause. I do believe the market has 20% higher from here, a bull market of sorts for another 6 months. However, there will be set-backs, tricks along the way.

Some of you might view this weakness as a opening salvo into what might become an “October surprise”, whereby the markets plunge despite government intervention. Being a pragmatic man of reason and justice, I am open to all ideas, good and bad. But if there’s one thing we’ve been taught over and over again, no matter how much we may want to believe “this time is different,” asset prices will be propped up–by hook or crook.

Having said that, I detected some cynicism in the tape yesterday, which is why I sold my largest position, MCK, and a top 5 holding, AKS. Although I did buy some OSG, crazy for boats and such, my cash levels have been tripled to nearly 25%. Even with all that cash, I’m still giving back some serious coin this morning.

Remember boys and girls: losses are part of the process. For all I know, we may be in for a 1 month malaise, a seasonal beat down for the ages.

Nevertheless, my only conviction lies in the untenable fact that the Fed is going to increase money supply, denigrate the dollar, and, ultimately, make stocks go higher–emphasis on “make.”

NOTE: A fascinating story that has played out for more than 10 years with SCMR is over. SCMR is one of the few survivors of the dot com crash, having been lucky enough to price a secondary just before the crash; they were buoyed with over a billion dollars in cash for over a decade. Well, they just gave it back to shareholders with a special $10 divvy. Bravo.

I smell fish in the oil markets. Something is awry!

Also, I’d like to opine on the overt manipulation by the media, attempting to brainwash people that American’s “do not relate” to Romney. Excuse fucking me, and pardon as well, I relate much better to a man of industry than some oddball community organizer fellow with a nefarious and secretive past.

Fuck the alphabet soup.

[youtube:http://www.youtube.com/watch?v=84HIkyw2lQw 603 500]

Top pick: OSG

I lied.

I sold out of MCK and AKS and bought OSG.

My cash position is now 25%.

The market is climbing, fucking all of you TZA players with animalistic barbarity.

I bought a few shares of SVU and now I’m off to do other things. Aside from having all of the flex ducts ripped the fuck out of my attic, replacing it with old school sheet metal, the expenditures at Casa del Fly remain at a paltry $2k per day. It’s a trifle compared to some of you 45,000 sq ft mansion types. I am a simple man, with modest needs and desires (ORBITAL SPACE CANNON, OSC). Beg my pardon.

Social media stocks are going up, yet I have no interest. Funny how that works. Shares of QCOR have been pummeled into the sand, yet I feel no sympathy for those who were caught 200% long.

My profit and loss for the day is about flat, nothing to see or do. My stocks are on siesta and I’ve concluded it’s better that I wait for them to come around, than to chase around the hot money like a Mexican whore.

I started a new position in SVU.

You know what I find amazing?

I cannot believe Corning and Asahi Glass can’t profit from the boom in smartphones and tablets. Those fucking imbeciles are too busy fixing on a price war than fleecing the drug dealers at Apple and Samsung. Shares of GLW are bouncing this morning; but this stock has been such a dog. It’s one of those head-scratchers that just seems to suck, continuously, without pause.

Shares of DECK are getting lit the fuck up. In general, analysts suck balls. But Sam Poser from Sterne Agee has nailed DECK the whole way, on the long and short side. He’s saying pricing for Uggs is over and to expect deep margin compression. His target is $38. I’d stay away from DECK until he’s remotely optimistic.

Early going I am down 0.25%, with NAK being my biggest winner.

On a personal level, I’ve been dealing with general contractors performing magical acts of disappearance, once money hits their accounts. Like lawyers, contractors are a reprehensible group of people. They are a stupid class of worker, who takes pride in doing poor work and flaking out on their customers. Right away, I am sure some of you construction fuckers out there will say “we’re not all the same.” I’ve employed dozens of contractors in my time, and without equivocation, they all suck.

Shares of GRPN and ZNGA are rising. GRPN has some lunatic device idea. To be honest, as opposed to outright lying to you, both GRPN and ZNGA are cheap stocks.

Lastly, I like what OSTK is doing these days. I’ve been buying stuff from the site and find them to be better than AMZN in numerous product categories. It will not surprise me to see the shares continue to rise.

I just wanted to take this opportunity to remind all of you ball jugglers out there that Le Fly (properly known in France) has conquered you, yet again. I am Rome: you are Gaul. I am Japan: you are China. I am the North: you are the south.

Many months ago, these halls were peppered with donut hole makers who tried to besmirch my good name by questioning my winship and market hand. Several months later and many basis points to the upside and I am now enslaving your women and salting your lands.

See, it’s always a losers gambit to bet against me. Ultimately, “The Fly” wins because that’s what he was meant to do. While some of you enjoy a rather relaxed middle to upper class lifestyle, it is done without decorum or regard for the traditions that has made this country magnanimous. Therefore, said lifestyle is declared “null and void” by society.

I’m going long a certain “penny stock” in the morning and will see to it that it becomes a winner.

Stay tuned, tit fondlers; the winship has just begun.

Aside from the sublime algorithmic fortune telling taking place inside of The PPT, I stumbled upon a new discovery, one which has allotted my purse (no homo) with a sizable amount of coin–these past few weeks. Recent winners include NAK, TC, CVO, ANR, YOKU*, KIOR*, OCLR* and ACI*. The winship has been plentiful, at a high percentage clip, alarming me to take notice and trade said names with feverish rapacity.

Today’s picks include APOL,SEED, TW, DNDN, NTLS, PAY, just to name a few.

The very essence of this screen is to search though 4,000+ stocks for a certain geometrical pattern that often leads to explosive moves to the upside. Clearly, this is not the holy grail; but it is an edge. Being a member of the higher echelon of successful Wall Street alumni, I can tell you with sterling certainty that having “an edge” is all one really needs in this business. With a little luck and hard work, you too can make a living out of buying and selling letters in the alphabet.

As a matter of fact, for years, my eldest son used to believe his Father “bought and sold letters of the alphabet.” When he’d ask me what I did for a living, I’d simply respond to my young child “Daddy, mind you, buys and sells letters from the alphabet. Now go eat your porridge.”

* denotes lack of participation

I’m moving on up, you jive turkey mother llamas.

My NAK is on the move higher. Frankly, I am encouraged by that Romney video, where he actually speaks candidly about the welfare state we live in and how Obama panders to them. If he is going to win, he needs to be bold, create excitement through plain speaking, not political talking points. If Romney goes up in the polls, it will be viewed positively for NAK, given the outside chance that a Romney victory will mean an easier EPA. With an easier EPA, NAK might be able to mine the 3rd largest copper mine in the world.

All of my other stocks are about flat, with DDD being the outlier to the downside. After losing 2% in yesterday’s homosexual trade, I was hoping to regain some lost coin today. Hence, I bought some IDTI and JIVE in order to try something different. JIVE is more of a momo trade than IDTI, however. I intend on buying IDTI over the next 3 months, as I am keenly interested in their “wireless charger” technology.

MCK and ATML are my #1 and #2 positions by size. I need those horsefuckers to trade up, if I am going to have any fun today.

By the way, I was elated to read about some Pakistani, would-be suicide vest bomber, die from the toxic fumes that emanated from the American flag he burned. How funny is that? That will learn them quite nicely for fucking with our flag.

In other news, I have several irons in the fire that need to be dealt with. It looks like a slow session, with marginal bias to the upside.

The market is waiting for something to happen.