Eagerly Awaiting Resolution

The market was on edge this week, ahead of the ever important JACKSON HOLE. Will the Fed go for another round of QE3 and help 0bama get reelected? Or, will the Fed acknowledge the fact that they have little control over the employment problems in this country and allow the politicians to sort it out for themselves? It’s all too convenient for the cocksuckers in congress to point fingers at Ben and blame him for everything. It might be time for Mr. Princeton to show everyone who’s boss by not doing anything.

Congress talks shit about Ben; but they are eternally grateful to him, in private, for keeping this economy going, albeit by artificial means. The moment the Fed steps away from the economy, all eyes will be on the political apparatus. My guess, people will not like what they see.

I added to my NFLX position. I’m not sure why, actually. It is my largest position and I don’t have a lot of conviction in the name. I will keep it on a very tight leash. In addition, I bought some MCK. My senses suggest drugs and healthcare will be the preferred sectors to own–heading into the elections and the months of September and October. I am in MCK for the $100 roll.

Lastly, I have a big ole stupid sized position in HDGE. As you can see, it is hardly down today, despite the market being +100. It is an actively managed short ETF, with zero leverage. Their largest shorts are C and DB, both excessively rich in valuation–in my humble opinion. It is a hedge, designed to offer protection against spiraling lower equity prices. If it doesn’t pan out in a week or so, I will sell it and move on.

The rest of my assets are in cash, constituting about 35% of assets.

I added to my NFLX position and started a new one in MCK.

Let’s go over the internals, shall we?

As of right now (1:29pm), just 61% of stocks are higher, with noticeable weakness in materials, particularly anything related to global growth. Copper, chemicals, steel, aluminum, ag, auto parts, casinos are all lower. Tech is holding on by a thread. There is not widespread strength today, despite what the cocksuckers at CNBC say.

On the plus side we have retail, banks, REITS and drugs. I am warming to the drug sector, thanks to its defensive nature and historical outperformance during the month of September. WPI, ESRX, ABC and MCK look great.

Within tech, I am warming to NTAP and PLCM, both traditional “value plays”–just like MRVL. As a matter of fact, all three companies have about 30% of their respective market caps in cash. There are strong underpinnings in all three, fully supported and buttressed by cold hard cash.

I don’t expect the market to reverse lower today. However, it should be noted, today’s rally is not exactly awe inspiring. Therefore, from my vantage point, NOTHING has changed and I will remain EXCEEDINGLY cautious ahead of Jackson Hole (extra homo).

So Romney wants to get rid of the Clam. With one stroke of the pen, the Clam can get rid of Romney. Should QE3 be enacted, stocks will explode to the upside. Mountains will be moved and the GOP will be left holding a bag of dicks. Obama and his idiot sidekick Biden will get to enjoy another term and by the time they’re finished– the United Steaks of America will have $20 trillion in debt.

Romney is running a stupid campaign, not much different than Ace pilot, John McCain.

Thus far, I am enjoying my day, immensely. I get to sit back and watch all of you bank coin, whilst wallowing in shallow waters with a mountain of cash strapped to my back. Owning NFLX is like being in possession of aids. It’s gonna kill me one day; I just don’t know when it will happen. My other large position is VHC, which is holding up for now. And, newly minted HDGE is down a smidge, a blessing from the Gods, on this victorious day for the bulls.

As always, MRVL is lower. It is such a value.

I don’t want to miss too much upside. Therefore, I will jump back into stocks next week, should this rally continue. Until then, it’s sandwich time for Le Fly, patiently waiting for stocks to reverse and plunge lower into the depths of hell, AND MORE.

Poof! Your bullshit prophecies are gone.

-Merlin

We’ve climbed a long way from the April lows. The Dow is above 13,000 and investors are feeling good about themselves, with marked exception to those still trapped inside YELP. Nevertheless, it is your duty, as gentlemen of society, to take profits and spend money freely. It is your constitutional right.

Although I regret selling CTRP, seeing it go ‘full retard’ to the upside without helmet. I made 15% for my troubles. One cannot lament over missed gains.

Here we are just a few months until the elections. On one ticket we have Karl Marx, who is interested in throwing the upper middle class into government fire hydrants–head first. On the other, we have “medicine” also known as austerity. It may bode well for the general economy in the long run; but in the short term, medicine tastes like shit.

To my cocaine gorillas in the jungle, boxing skeletons into dust, I bid you farewell. “The Fly” will be back when things cool down. For now, I am fleeing this resort before the fires of the jungle fossilize its inhabitants.

Fuck this horseshit.

http://www.youtube.com/watch?v=GsM0jxGyUbE

Let’s lay the ground work, shall we?

We all know the markets have been going up due to QE, right? Furthermore, we all know the economy isn’t in the shithouse because of Bernanke, correct? The Fed provided liquidity for the economy and the markets. It’s your local fuckhead Congressman who spent your grandchildren’s money on hookers and military contracts. Understand something, Ben Bernanke is an American hero. He is the only one who had your back during the bleak moments of 2008.

But that was war time and this is peace. Ben is now vilified as a demon, BY YOUR CORRUPT Congressman, because he doesn’t want to take the blame. This is typical Washington bullshit. Your government does not work for you. You work for them.

Romney just said he would NOT reappoint Bernanke if elected. Moreover, he said QE2 did nothing and he does not support QE3. Got that?

Good.

Clearly, Romney doesn’t want stocks to trade up because he wants Obama out. This is the republican game plan. Be on guard for more of this horseshit, as the election draws near. Back in 2000, I remember Bush stoking the same fucking flames to derail Gore. It was not a pleasant trading environment, to say the least.

Frankly, I can’t stand this sort of political bullshit. I loathe politics and feel they’re all bastards, spawned from motherless whores, here on Earth to hurt the weak. Despite Obama’s abysmal “track record”, I will not be voting for anyone this election. I don’t have faith in the two party system and would prefer to see the capitol aflame by Americans wielding pitch forks–before I participate in this shame of a democracy again.

I bought 100,000 HDGE to hedge my longs.

I spoke with “The Devil” today and we went over the current state of affairs. He’s never been so convinced of lower prices, looking for a “Minsky Moment.” Essentially, he believes the decrease in volatility/spike in complacency is the market’s biggest headwind now. We are setting up for a large downside reversal and no one will see it coming, except Scott Bleier of course.

I’ve taken liberties to raise more cash, booking a 12% gain in DMND. It was nice playing with the ideologues who swear on bibles, but I have money to make and don’t have time to play games with you. Chalk up another win for Senor Tropicana (African jungle music).

I’m tempted to buy JMBA and PSUN, both small cappers with interesting turn around stories. However, I am exhibiting patience on a monumental scale. After all, someone has to set a good example for the children out there reading iBankCoin. Why don’t you infants grab a bib and BEHOLD what I am about to serve you?

Look for the dollar to trade up in the short term, as it is bound by certain parameters, most expressly communicated through the harmony of mathematics (SHOMP).

I will be taking on a hedge today.

UPDATE: I bought HDGE

http://www.youtube.com/watch?v=XfSJwK_V3Bs

Macy’s furniture is an abomination. Two consecutive times, those cocksuckers come to my house with damaged furniture, making me send that shit back to the chinese slave factory it came from. Frankly, aside from some domestic North Carolina wood, the quality of the furniture in this country sucks. Have you ever been to a Raymour and Flannigan? Geez, what a fucking disaster.

Speaking of disasters, stocks are measurably lower, following Europe down the sewer pipe. Italian and Spanish yields are higher and TLT is spiking. None of this is good for stocks.

Believe it or not, my largest position, post sales, is now NFLX. I have half my book in cash and the patience of an elephant high on morphine.

Expect lower stocks prices in the near term. I hate to lose money on 50% of my assets. However, I am in a fairly good position to buy dips, especially margin liquidations, being +25% for the year. I’m in no rush to test greatness. It comes naturally to me.

In short, DMND and NFLX are buys, especially on dips. I have a great deal of money, waiting for reallocation. I’m in the market for ideas now and will make it my business to acquire some. But a correction is coming, perhaps something a bit more severe than anyone is predicting now. There are tax issues in this country that need to be dealt with and an election that draws nothing but apathy from the American populous.

Beware of the September surprise.

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

A man who calls himself “Holdtherisk” broached a very interesting subject in the Blogger Network (@ibc_bn). It reminded me of a quote from the late Andrew Carnegie, who incidentally is one of my favorite old school stewards of wealth and wisdom. He said “Concentrate your energies, your thoughts and your capital. The wise man puts all his eggs in one basket and watches the basket.” Carnegie said he borrowed that phrase from another great, Mark Twain. Either way, it’s an interesting subject to talk about, with regards to investment philosophies.

I must say, when I was starting out as a young investor, all I did was swing for the fences. I exhibited ZERO discipline. I was like this guy, but with stocks. At the time, my clients loved me–because I was a fucking genius in a raging bull market. I had no fear and nothing to lose, other than other people’s money. I didn’t quite understand the philosophy behind “managing risk” and my returns reflected that.

Back in 2000, I lost a large 7 figure account. He was a CFO of a publicly traded company and could have been a monster client for me, in terms of gathering referrals. Do you know why he left me?

I made him too much money.

I scared him away with my erratic investment style. This was a man of great deportment and prestige. He didn’t need some young 20 something rolling dice at his behest.

If you’re in the business of managing money for other people, listen to me very carefully. You’re never gonna get big playing bullshit stocks for small rips. You will get pigeon holed as “the crazy, fuck you money” guy and will never earn full trust from your clients. In that regard, Andrew Carnegie was a fucking moron.

However, there is something to be said about self directed investors, willing and able to take risk, trying to make it big. I find nothing wrong with it and encourage you to do so, only if you can afford to lose it all. Over the years, I’ve lost immense amounts of money, gambling in oversized positions or fucking around with options. A few years ago, using The PPT overbought/oversold algorithms, I turned 100k into a million dollars. The next year that money was cut in half, stabilized, then I took it out of the market.

Why did I take the money out?

Well, for me, it was a distraction. My business is to manage money for others, not for myself. The volatility of my casino account became a distraction, so I eliminated it. I still have long term investments; but I am sure none of you are interested in boring stuff like that.

If you understand the risks and have an idea that you are passionate about, I say fuck it–go for it. However, if you are an old, crusty man, with limited resources–I forbid you from gambling like a degenerate OTB guy. As for you pikers trying to make it big in the business, get on the phone, smile and dial, and raise some fucking assets. Quit trying to be Gordon Gekko and get to work.