RAPIST!

I do find it quite humorous that the IMF boss was pulled off a plane, like a dog, charged with rape and sent to spend a few nights with NYC’s homeless at the tombs. This is a guy who was supposed to be the next French President. Now he’s a fucking rapist. LOL

It doesn’t matter if he is guilty or innocent, for he will always be considered by many a rapist. Whatever plans he had for the future have been permanently canceled, in exchange for prison time at some butt fuck factory in NYS. Maybe his real crime had something to do with Greece, Portugal or Spain. It really doesn’t matter. All that matters now is JP Morgan and Goldman Sachs are firmly in control of the world’s money supply.

Having said that, I am a seller into rallies, until the QE3 shit is clarified. Frankly, I cannot be bullish, whilst the US is devoid of treasury buyers. All of the POMO money will be gone. It will be like a celebrity shindig sans the cocaine. You can’t have a rally these days without cocaine (POMO), as you are well aware.

So, to protect my assets, I am cash heavy and long TLT, with a hedge against my silver stocks via ZSL. With regards to my refiners: I am pretty much catching gravity hammers to the skull. But what am I supposed to do, ignore the past 3 years of market bliss and sell everything? I do what I can, without getting all burlap’d and shit.

My ideal scenario is to get a hybrid score in the 2.50’s in The PPT, enabling me to buy dips. One could make a very good argument for lower equity prices, in order to flush money into treasuries. The only way to build internal/domestic demand for treasuries is to take away all available options.

Here is my checklist:

1. Real Estate- check
2. Commodities- getting dicey
3. Checking Account- check
4. Equities- not yet
5. Corporate Bond market- still good

When all of that shit above looks bad, people will do “The Hugh Hendry” like a motherfucker, buying up lots of TLT as if their heads were on fire and that shit was fire retardant foam.

I added to my massive TLT position, firmly doing “The Hugh Hendry.”

Disclaimer: If you buy TLT because of this post, the U.S. will default. And, you may lose money.

[youtube:http://www.youtube.com/watch?v=QEW6gDN5yVg 616 500]

The United Steaks of America is truly a classic place to live, trimmed with all of the fuckery you’d expect from an empire on the decline. Do you really think these degenerates in Congress will not raise the debt limit? I mean, how stupid would that be and what purpose would it serve? You don’t take away the water when the house is burning. You are supposed to starve the fire of oxygen and douse it. All these idiots care about is getting elected and using the moronic tax payer to fund the projects of their corporate sponsors. Believe me, I am not hating on this particular form of oligarchy, since I rather enjoy it. But, do not think for a second that they care about you.

They most certainly do not.

The market is ripping tits to the upside and silver is down. If you are wondering how my day is going, just take a look at my cock: WNR. When it is up and vibrant, I am good. When it is down and depressed, I am punching people in the face with mustard gas. At the end of the day, plebs, everything has a way of working out.

Quick update for you Fly followers: Mortified by the cicada news from the south, our summer road trip to the land of pig and gravy has been postponed until next year. So, as you could imagine, this throws my road trip plans into flux. I did the whole New England thing last year. So, unless I am willing to drive into the Atlantic Ocean, it looks like I am heading west. Unfortunately, the midwest is filled with the most reprehensible creatures this country has to offer. For the most part, anything between Ohio and Wyoming is littered with pasty idiots, who either tip cows for Saturday night fun or pray to magical creators to kill all sinners through fire.

In short, I may just travel up to Canada and call it a day, eh?

NOTE: I am long lots of TLT

With the IMF actively raping people and Portugal on the front burner, I’d rather sit around the house all day, watching reruns, than fuck around with this murderhole of a market. I realize there is plenty of money to be made and I need to make up lost ground. However, these are not ideal conditions for me, so it’s better that I excuse myself, cordially, than make matters worse. At the present, more than half of my assets are tied up in cash and treasuries (long dated). The rest of my liquid assets are long refineries and flamboyant silver stocks.

Frankly, a lot of this stuff is making less sense, as time progresses. Silver is no longer trading with the dollar or gold. It’s just sort of winging it, dramatic opera style.

The market is afraid, but wants to go higher. It always “wants” to go higher. Remember that. However, there are periods of “rest” or consolidation that allow for insane clown raping rallies, later down the road. For the most part, I am all about insane clown raping rallies.

In short, I am waiting to see how the market responds to a bit of adversity, prior to reinvesting. In the meantime, I will build a list of stocks worth buying on dips.

NOTE: The Reformed Broker nails the Red Collared Crime Wave

The drop in the major indices is underway. Whether it will last for one week or one year is not relevant. The purpose of this blog is to tell you how to play it. A great man once said “I’m not selling you anything. I’m telling you everything.”

Lower equities means lower commodities.

SCO, ZSL, ERY and DUST will get the job done.

Also, banks, tech and real estate will get poleaxed. Get some:

FAZ, DRV and TYP

Volatility

TVIX or VXX

Long Treasuries

TLT or TMF

Long Dollars, Short Euro

UUP, EUO

Fuck China

FXP, CZI

Ladies and Gentlemen, regrettably, I am here to inform you the end of the world aka “The Mother of All Black Swans” is upon you. You will make a glorious amount of coin shorting stocks, and comically find yourself incinerated, all at the same time. You will be like “oh shit I’m rich,” then in the very next second you will get smashed in the skull with a cinder block, just prior to burning down to a cinder. It’s the comedy of all comedies, dying while at the apex of life, emotionally.

As for me, fortunately, I’ve secured proper seating inside of Space Station #3, located just north of Greenland. I depart tonight, by zeppelin, and will be blogging from there until you are reduced to a pile of ash.

Good night.

Big hat tip to ChessnWine for inventing the BTD. I’m stealing this shit, for it is too funny.

“I’m a terrible investor. I am probably the worst trader in the world, Maria. I am buying any commodity that is down. Whatever is down is a buy because Dr. Bernanke is an idiot. He has no idea what he is doing and he should resign now.”

-Jim “Bow Tie” Rogers

CEO of The Bow Tie Diaries (TBTD)

This just has the look and feel to a broken elevator market. I am not buying anything else until I get some real low PPT scores. Until then, I am 10% TLT, 40% cash and the rest in equities, with a little ZSL as a hedge. Silver was fucked today, with stocks lower but the ETF up. Go figure that one out.

All in all, it was another horrendous week and I am no longer in the jovial mood to talk about its many nuances.

Regardless of your disposition, this is a hard tape to trade, with various cross-currents mucking up sentiment. To hedge my overweight silver positions, I bought some ZSL. And, to park my 50% cash position, I took 10% of my assets and bought TLT aka “The Hugh Hendry.”

My stated goal is to slow down the beta, in order to not get blown to pieces. Therefore, it’s imperative that I live to fight another day.

The upside is obvious: this blip gets bought and everyone is back to sucking tits again. Or, perhaps this is the beginning of the ending, with commodities leading us down. Frankly, there is no way to know which way this market will turn. And, we certainly will not resolve these issues on a slow Friday afternoon. Therefore it makes sense to go to cash, hedge or trade quickly.