THE WINTER IS HERE

In the immortal words of Jefferson Krull’s Rambo doll: “it’s over Johnny.” There is nothing for me to tell you other than “hide your dicks” because the guillotines are now being used on the longs.

Italian 10 year yields are at 6.55%
Spanish 10 year yields are at 7.58%

Don’t look now, but Polish yields are at 5.01%.

The market cannot and will not rally while ancient countries are on the verge of systemic failure. All of the money is flowing into US, Swiss, UK, German, Austrian and even French coffers. However, due to German greed and a desire to murder its neighbors, said monies are not being shared with EU members countries who are in despair.

There is a reason why I went to a 40%+ cash position yesterday: we’re heading the fuck lower.

In the event of another bailout, however, gold and silver will lead the way up, which is why I am long EXK in size.

But nothing will be spared in the coming melt down. There isn’t anymore corn and Obama is scheduled for another 4 years.

Good luck.

http://www.youtube.com/watch?v=XSV8WPzWU28

Seek professional help from the boys at 12631, else end up like the chick with the leg hanging out the window.

I do not regret selling today, as the majority of the stocks sold were at a profit. I added to my EXK position, in grande fashion, because the laws of mathematics and science dictate it is bottoming out.

Imagine yourself walking into a bank with 1 million dollars. The banker approaches you and says “good day to you Sir. Deposit your money here and in just 5 business days, I will give you back 1.15 million dollars.” You retort “why thank you, kind Sir, I will take you up on your proposal and give you this money right now. Good luck.”

That was my thinking when I bought EXK today.

I cannot tell you why stocks rallied all day, after a horrific open. I can only suggest that someone is intently interested in higher equity prices. Therefore, as the direction is my master, I follow it into the close.

I added to my EXK position by 1/3rd. It shall not trade lower.

As you were.

The markets are reeling from panic, with exception to corn.

Have a gander, will you?

On Jupiter’s Stone, we’re all doomed to starve, deprived from high fructose corn syrup. Most of you out there will be disheveled, unable to cope without the luxuries of faux maple syrup on your frozen pancakes. The truth of the matter is, corn is only meant to be burned for ethanol, not to be eaten at all. Today’s resilience lends to the idea that the entirety of the corn crop, mind you, is in shambles.

You were looking for a crisis of mammoth proportions, betting against banks and egregious natural gas conglomerates, yet the real black swan lurks in the farms where 96 million acres lay barren from drought, planting the seeds of dust bowl and famine, instead of sustenance.

As such, I take it upon myself to milk whatever is left from the farmer, through pivots and extraordinarily expensive irrigation systems. I sold out of MOS and RNF, based upon the laws of merit and caution. Howsoever, I still hold a full position in LNN– and would rather rub poison oak all over my face and body before selling out at these levels.

The good company VALMONT, ticker VMI, is slated to report earnings on the 24th of July. I suggest you listen to what they have to say, especially if you are long shares of LNN.

All in all, ag is my only play in the interim. I am not a buyer today because only fools, scoundrels and charlatans buy stocks when Spanish yields are at new highs. Nevertheless, I intend to reallocate a healthy portion of my cash reservers into this sector, into the blood.

While my tea kettle starts to heat some water for my earl gray, I am going to paint a picture for you.

Imagine you were +25% for the year, after barely scraping out a gain the year prior. It’s summertime and the world is filled with uncertainty. There are wars taking place and giant nations, ancient ones, on the verge of financial collapse. You find yourself long a wide array of risky and volatile stocks, all up from your basis. Under such a scenario, I’d say only a fool would just sit there and let nature take its course.

I took profits.

Early this morning, I sold out of MOS, ALJ, CRESY and shaved off a few percent from some other positions, putting my cash horde up to 45% of assets. I didn’t have to do it; then again, I am not required to do anything but make money for my clients.

I kept some of the more interesting names, since I do believe there is a bid in this market. I still have my entire EXK and LNN positions, as well as RNF, CPST and CGA. I hope the market goes straight up and everything I sold gets bought out by MSFT. The truth is, I cannot justify being heavily long as Spanish and Italian yields break new highs.

If and when the ECB bails them out again, sending yields lower, I will have ample time to repurchase the market. Until then, or until we get an official OVERSOLD reading in The PPT, I will be playing this market as if I was dancing atop expensive dinnerware.

UPDATE: I changed my mind on RNF and sold it out for a small loss.

Well, my theory just went out the window.

I fancy this market to be in plunge mode now, all thanks and praise go out to the FUCKING Spaniards and Guidos for that. What is to discuss? Yields are simply to high. Money is being hoarded in well-to-do nations, as represented by negative yields in 6 countries. This doesn’t have the look and feel of something I want to test out for an extended period of time. My guess is that many traders are approaching this market in a similar vein, waiting to see if we bounce. The problem with waiting is the 2nd leg lower might be worse than what you see now.

We know the central banks will not allow the system to fail. We also know Bernanke is ready and willing to start QE3, if we are in dire need. So, having said that, shorting the market is out of the question. The only course of action, frankly, is to raise cash and wait for an opportunity to use it.

My cash position is just under 20%. I will most likely up that level today, not to be hypocritical about my previous bullish stance. Instead, I view my malleability as the primary reason I am still here today, successfully managing money because I ceded to the demands of the market in the past. There are battles to be fought and wars to win. Sometimes it’s best to spectate and let others step on land mines or get eaten alive by rabid wilder beasts.

Futures are lower, amidst renewed concerns in Europe. How many times must we deal with this issue?

Answer: until they collapse.

This isn’t going to end until the EU collapses and the global financial system is flushed, mind you, down the toilet. However, it doesn’t have to happen right away. Japan is the canary in the coal mine. They’ve been monetizing their own debt forever, now upwards of 200%, yet yields are at the lows.

I have clients who swear the dollar is going to zero; but those concerns are based upon political idealism and not fact.

Fact: the US is in better shape than Europe.

Fact: US dollars are in high demand. As a matter of fact, there is a scarcity of dollars around the world, pushing its value higher.

Fact: The US economy is still, by far, the best and most diverse economy in the world. China eats bags of shit.

We might trade lower tomorrow; but there is a silent hand in this market, helping us underlings bank coin without interruption.

My advice is simple: avoid names that missed earnings last quarter; because they will likely miss them again. When you have profits in excess of 10%, consider booking some, unless of course you are long term oriented. Lastly, keep some cash aside, maybe 20%, not to be a pussy, however. Keep the cash to buy the blood, margin liquidations of men clad in burlap straight-jackets.

As for me, I’ve been dealing with my new environment in the most belligerent way possible. Just this morning, I witnessed 5 fucking deer in my yard. GET THE FUCK OUT OF HERE. Immediately, I hired a mason to build an iron fence (with spikes), connected with pillars of limestone with lights atop, to encircle my property. It is a very tedious task for them; but that’s why I am paying them to do it. I will not stand for filthy, disgusting and stupid animals roaming about my property without invitation. It is rude, frankly, and without top-hat.

Very soon, I will impale them with my iron fence!

My “Diseased America” post from earlier today was supposed to be an honest rant about how I view America’s social fabric. Amazingly, many of you turned away from the subject of some lunatic killing a dozen during a Batman movie to “Fly curses, therefore, he is evil too.”

Surprisingly, I have these same debates with Mrs. Fly, as she loathes my colorful internet persona and feels it is something she’d rather avoid. While it’s true, I don’t need to curse in order to make my point. It’s also true, comedy just isn’t the same without foul language.

Anyone here thinks Richard Pryor or George Carlin were “boorish” individuals? Who gives a fuck what you think! Those men provided comic relief to millions, something that only a few can do right.

I am coming to my point now.

If you are somehow distracted by the four letter language on this site, there is something wrong with you–just like there is something wrong with Mrs. Fly. You’re too uptight/conservative, focusing on the aesthetics and not the mechanics. This is an adult venue and we discuss money here. I am not a cartoon character telling Joey to fuck his Mother, mind you.

There is a time and place for everything. Frankly, this is the fucking time, and the place, for me to tell you, and others, to fuck off else face “wildish”, animistic acts of violence. I say these things with the utmost sincerity and candor. I ask nothing from you– but to take your shoes off when walking on my Persian rugs.

And remember, this site isn’t about you extracting information and using it for your own selfish purposes. This is my chalkboard and I get to spray paint on it, if that’s what I feel like doing.

My last post brought out some bible thumpers, attempting to beguile me into running a curse free environment here. Good Sir/Lady: fuck off. I don’t believe in your book of fantasy and have walked this earth for over 36 years, raising three well-mannered, and exceptionally smart children, all the while cursing at you since 2007.

Back to the markets.

I am up 0.25% today despite the bad tape. The reason for that is simple: I am a consummate professional manager of money, whereas you just monkey around in the banana trees throwing fecal matter at the ground. Even inside the halls of The PPT, one of you had the audacity to announce a short position in one of my holdings: ALJ.

Bet against me: lose your house, kids and wife.

In case you haven’t noticed, I am burning white hot. Long time readers know I am very streaky: I’m the Joe DiMaggio of this stock business.

In short, I still like LNN, MOS, CRESY, ALJ, RFMD and EXK–even YELP looks great. By design, my biggest wins have yet to be revealed. Just know and understand, I am unrelenting in my pursuit for greatness and nothing is going to get in my way, not even a Chinese burrito.