PREPARE FOR PAIN

I am now up 50%+ on my TZA calls. Do you how I timed the market top to the exact day? Ask around and you will understand that there is a sublime harmony of mathematical precision present here on iBC. You just need to know where to find it and unlock its treasures. My accounts remain flush with cash at 60%, awaiting for the chance to buy back in cheap.

You fuckers are simply too nebulous to play on the same field with me.  Most of you are red commies, dressed in capitalist pig uniforms, decrying the unfairness of life in general due to rich guys fucking up the world. This Halloween, be sure to take your nebulous asses over to your local costume store for a Joseph Stalin uniform. You can masquerade around town, taking candy from little rich kids and then giving it to poor kids throwing D batteries at one another.

You deserve what you get and most of you deserve nothing.

Bottom line: this isn’t pain. We are undergoing a benign sell off, which is going to lead to a flush. As always, “The Fly” is in the tall grass, waiting for a chance to go in for the kill.

Top picks: DECK, TZA

I am politically indifferent. However, I do lean to the right because the left is filled with a bunch of pussies. That being said, for the most part, I believe the republicans are a reprehensible group and should be disbanded as an organization. However, regarding the debt ceiling, they are 100% correct.

Like it or not, they were elected by their constituents to represent a mandate. This mandate states: “fuck big government and buying shit we can’t afford.” Again, if you are a democrat, you must respect these wishes. Since when is it a good idea to redistribute wealth from rich guy in a jet to some smelly homeless guy with a fucking heroin needle stuck in his neck? I want you to tell me why we should raise taxes in order to balance the budget, without emotion or ideology. Give me the path to prosperity, not what is fair in your eyes.

At first, I was against the GOP for playing politics with the debt ceiling. Then it dawned on me, if not now then when? Right now is as good a time as any to make a stand and tell the dicksuckers in Washington they can’t keep spending money on all sorts of brainless shit and get away with it. Just because we raised the debt ceiling in the past doesn’t make it right now.

I honestly believe the GOP is trying to save this country from damnation. Without some sort of fiscal discipline, coupled with easy taxes, we will not survive the decade whole. What they need to do is encourage businesses to expand by easing regulations and taxes. All of the waste and corruption is choking this country dry.

None of the cuts being made will have a major impact on GDP, since all of the entitlements are fucking retarded anyway. If it was up to me, I’d slash defense spending by half too. However, that would get me “Kennedy’d” or “Lincoln’d.”

One stone at a time.

I will let the distinguished Greg Solomon discuss matters of great important with you, on my behalf.

I am not talking about small, localized stupidity. What we are witnessing in Congress is grand, industrial sized, infectious stupidity than can only be matched by the head Generals at the Department of Defense. Do not think they are here to help you. They have no issue, whatsoever, taking your dumbass and throwing it under a bus or on top of an IED.

Although I nibbled on a little BLTI, mainly for novelty, I do not trust this tape and remain in a 60% cash position. Moreover, for personal accounts, I am long some TZA as a hedge. Mind you, for the reading impaired (CH), “hedged” is the operative word. I’ve given up trying to make money on the short side. It’s too hard. I rather sit in cash or treasuries and wait for the margin liquidation crowd to get nailed and/or PPT OVERSOLD signals be my guide.

Tune out the noise and think about what’s important here: making another 3-5% in a high risk environment or preserving hard fought gains.

Your call, goatfuckers.

I started a position in BLTI, buying 5,000 sub $3.90.

I’ve been into a different lifestyle as of late. About 3 months ago, I got burnt out from high doses of caffeine, coupled with stress and sleep deprivation. The result was annoying arrhythmia (4 skipped beats per minute) and mental fog. Since then, I changed my habits by eliminating all intake of wine and coffee. In addition, I’ve been taking mega doses of vitamin C, as well as other vitamins, baby aspirin and adequate sleep. As always, I exercise at least 4 times per week, a mix of weights, cardio and p-90x. I feel great. I kid you not when I say “coffee is poison.” It’s a fucking stimulant and it fucks up cognitive thinking. I am much better without it.

Thus far, the market is in denial, “non-eventing” the bad headline news. Nevertheless, I am not participating in this tape. Truth be told, I am up today, thanks to GSVC, VCLK and a benign DECK and BPFH. Plus, my little TZA call position is up around 10-15%.

I’m adhering to a certain discipline by sidelining myself here. I do not expect all of you to understand. However, then again, you fuckers never understand.

I’m waiting for a few shoes to drop. Don’t mind me, as I leave chemtrails above your bullshit house, zipping along throughout the United Steaks in my space rocket.

We all know the U.S. is not going to default by 8/2/11. However, I’d be hard pressed to find people out there who would say, emphatically, we will not default within 10 years given the current trajectory of the budget. We spend too much and we make too little. It’s only a matter of time before the debt load chokes us to the point where we need to authorize severe austerity measures and much higher taxes. By that point, the U.S. economy will be in a death spiral stage, boasting real unemployment of more than 20%.

The reason why it’s so important to the markets that we get our financial house in order is because, to some, we are still the hungry lion trapped in the room filled with inexperienced day traders (appetizers). The fact that the GOP and Dems cannot craft a deal tells the world we are a country filled with baboon brains, more adept at destroying shit than building.

Should we fail to raise the debt ceiling, the market will take a hit. Plus, don’t forget, the rest of the world is entirely fucked, including the biggest house of cards: China. At some point, everything will fall, 2008 style, sending Senator Gint to his local chapel for deep prayer to his imaginary friends.

At this point, I have no ideology or agenda. I know it sounds cliche, but buying the dips and selling the rips is the only thing that resonates with me. Do yourself a favor and try to tune out the noise, especially from 3rd tier blogs, owned by kids who have never held a job for more than 2 weeks. I do not find it fashionable to call out other bloggers for their ineptitude. Frankly, paying attention to another man for more than 2 minutes is a little fruity. I will tell you now, there is nothing fucking fruity about your Lordship, Le Fly, not even his illuminati lunchbox filled with fruit.

If a deal is not crafted, this is exactly what will happen to people who are heavily long stocks.

I lightened up some more and added to my TZA hedge throughout the day. At the present, DECK and VCLK are my largest positions, then GSVC. Tech looked great today and I am not doom and gloom, but cautious.

I have an interest in fine tuning my trading, so bare with me if I am throwing out a lot of cross-currents. The big picture for me is the fact that I am up 16% for the year. I ensure you, these gains will be preserved and added upon. With The PPT as my guide, and the explicit help of my urinal shadows, nothing can stop me, not even you.

Have a great weekend.

I sold out of both for 5% wins.

I am now 60% cash.