Wait and See; Panic and Hedge

ALJ is getting smashed due to the locale of their Louisiana refinery. An old saying comes to mind “be careful for what you ask for,” with regards to my earlier clamoring for flood waters to rise. At any rate, unless this flood completely wipes out their refinery, in my opinion, this is a buying opportunity. Therefore, I added to my position.

To hedge the drop in sentiment, I bought ERY, all done in my personal. Additionally, I sold out of EXK and TER, only for personal. The reason why I am doing this is because I am super charged leveraged in these names and cannot sustain large percentage drops. With WNR and ALJ dropping off the table this morning, I needed to do something to stem the losses.

For managed accounts, I am sort of riding this shit out, as for now. I want to see how the market responds to a bit of adversity before I make wholesale changes. As the Gods would have it, my cash position is incredibly low now, just under 7%. So, I am feeling the full force of this decline—at the moment.

More later.

NOTE: It looks like yesterday’s Hybrid Overbought signal was right on target.

I added to my ALJ position, below $12.60.

UPDATE: I bought ERY

Disclaimer: If you buy ALJ because of this post, crack spreads will go to zero. And, you may lose money.

Thus far, it’s been a biblical or “magic book” spring, with one natural disaster after another, plaguing the slave owners from the south. If God is real, there is no reason to not plague the south with heinous natural disasters. Over the decades, the citizenry of the confederate have earned the right to be smited.

As the Mississippi river crests, refiners along the banks will be shut the fuck down. Should that happen, WNR will fuck all shorts, instantly. In essence, WNR will become some sort of medieval fucking machine, victimizing shorts to no end. Reason being: their refineries are not near the river and they will be able to profit from any supply disruptions. FYI: supply disruptions mean higher gasoline prices, etc. Nevertheless, spreads are lower this morning, following the gorilla run of the past 3 days.

I’m looking for a dull market today and a pullback in silver. I intend to buy the PSLV sold yesterday at lower prices. For now, I like my chances bulking up on tech.

There is no need to panic or make quick decisions, for Ben Bernanke has this shit under control. I’d like to take this opportunity to thank the Fed for delaying the depression and allowing The House of Fly to build up reserves, which will help me buy distressed assets of great quality when the shit hits the fan. That’s right, “The Fly” is playing chess not checkers, always miles ahead of his competition, planning for their dissolution.

Today’s gains were moderate, a tad over 1.7%, getting me within striking distance of new all time highs for assets under management. My personal account is up about 45%, over the past 3 business days—thanks to well placed trades and a lot of leverage.

As the Mississippi river spills the fuck over, washing out rednecks along the banks, refinery stocks will surge. The coming floods will knock supply offline, leading to higher margins. These things, AND MORE, are inevitable. They are not opinions, but “future facts.” Go ahead, bet against the guy in the time machine, see where it gets you.

Aside from silver and oil, I like tech here. Two of my positions, TER and FORM, are behaving nicely. I have a few others on my watch list, but find myself unable to buy, due to maximum market exposure. In other words, Le Fly is “all in” yet again.

NOTE: The first person to call me a fucking contrarian indicator is getting clapped.

NOTE II: I booked profits on PSLV

Thanks to parabolic moves in precious metals, “The Fly” is back on track, ready to catapult dead bodies into the brokerage houses that trim the streets on Wall. I am buying more EXK, not because I “feel” it goes higher, but because I can. There is a distinct difference between a person, such as myself, and you. On one hand, welfare checks are doled out quarterly and food stamps are traded for cartons of cigarettes. On the other, there is brisk consumption of beluga caviar and 2 1/2 inch thick rib eyes, heavily salted, lightly peppered.

As gasoline presses higher, the prospects for a “rich man’s only” highway increases.

We’re all rappers now and money costs nothing. You can wear diamond necklaces around town and buy your wife hand sown Persian rugs, so that she may keep them in storage. As you well know, every household must have at least three Persian rugs in storage.

As it pertains to your investments: there is no need to get emotional about your trades. Keep a tight leash on your positions, limiting losses to no more than 10%. Try to avoid “idiot holes” by accumulating shares of strong stocks, as opposed to weak. And, trust that the Godly folks over at iBankCoin are better than you, in every way possible, because we are. It should not surprise you that I am writing this blog from the luxury of my space rocket, whilst “doing” MACH 10. Just as it does not surprise me that you are reading this post, whilst eating hamurders with cheese or other egregious foods that lead to diabetes, obesity and/or cardiac arrest.

At the end of the day, we are all judged by the things we posses, including health. Put the fucking milkshake down and get to work you stupid bastard.

Top picks: EXK, AG, PSLV, WNR and ALJ

I bought 5,000 EXK.

Spreads are up 10% this morning, breaking $34 with conviction. Every money manager who makes believe to know what he/she is doing will be positioning into the sector shortly. Multiples are very attractive and growth rates are best in class. All of the refiners fucked up with hedging in Q1. That will not happen in Q2.

Get that hard on, boner money, and circle jerk your way to prosperity (NO HOMO).

[youtube:http://www.youtube.com/watch?v=zdqCk_K-1y4 616 500]

Pardon last weeks lapse in testicular fortitude, when I complained about my losses and how thesis trading was old hat. As a point in fact, my thesis is working rather nicely these days, as I close out another +4% day. My gains, mind you, are so mind boggling, so stupendous, Mrs. Fly has taken it upon herself to gut my entire house, just for pure novelty.

Silver and crude are bananas to the upside. Refinery related stocks have broken the fuck out and are now shitting on the bears who sell them.

Ladies and gentlemen: you held your positions, during great distress, for days like this.

During the day, I kicked out VCLK and started new positions in both CLH and TER.

On a separate note, my WNR is bigger than yours.

NOTE: The PPT nailed the OVERBOUGHT call on ZSL, yet again. Make that 11 out of 12.

I bought 5,000 CLH.

321 cracks are now up 8% to 5 year highs, above $31. This shit is getting so egregious, so magnanimous, the clerk at my local gas station is doing lines of blow off his cash register.

If you are a human being in need of money, it is imperative that you consider long positions in one of the following, if not all: WNR, CVI, ALJ, HOC, VLO, CLMT, TSO.

In layman’s terms, it’s BONER TIME for WNR shareholders.