No Reason to Panic

I sold more than I bought today, raising my cash position to about 10%. There has been a lot of carnage in the tech sector this year and yet here we are, straddling near the highs. We are see-sawing with oil here, due to the ridiculous belief that $100 crude will hurt rich fuckers buying Maybachs. Look you, the box that I drive in is fancier than yours for a reason: I don’t give a shit about money and tend to blow it on weird stuff, like dinosaur bones or ancient swords (no, I’m not interested in having a sword fight).

The market is testing the waters here, shaking out the gimps. By the time you midgets are back in your gimps crates, all of us here on the outside will be having orgies with beautiful women and throwing caviar at one another—like gluttonous pigs dressed in tuxedos. In layman’s terms, you’re gonna miss the party because you are a gimp.

Copper is selling off to the STAGGERING TUNE of like 6%, over the past month. Any idea how much that shit is up, over the past year? Any?

It’s the beginning of March and the Irish are getting ready to drink themselves smart. Relax and go crack open a nice bottle of wine, while you watch the fucking cavemen in the middle east chop each others heads off.

Top pick: OPEN

I added to my OPEN position, buying 1,000 sub $88.

Disclaimer: If you buy OPEN because of this post, The House of Saud will fall tomorrow. And, you may lose money.

Ten billion dollar hedge fund,  Maverick Capital (based out of Dallas), founded by suspected “sham system operator” Lee Ainslie and the Wyly brothers (Evan, Sam, Charles) are having their collective heads handed to them this week, long a plethora of stocks that have fallen victim to the market guillotine.

Here are the 1 week returns for some of their biggest holdings:

FNSR -35%

URBN -16%

MRVL -10%

VIT -10%

SWKS -6%

Additionally, according to recent filings, they own more than 3% of SVN, down more than 12% today.

On the flip side, again according to recent filings, they own more than 9% of retailer PLCE, up 12% during today’s trading session so far.

Other sizable holdings include: SWI, CSII, IRWD, HMIN, LFT, PWRD, APOL and PACB

Cotton (BAL) +46%

Coffee (JO) +22%

Cocoa (NIB) +18%

Silver (SLV) +17%

Gasoline (UGA) +16% (obviously, not a RAW commodity-fuck off)

Tin (JJT) +13%

Corn (CORN) +10%

WTI Crude (USO) +9%

#No Inflation

We have a see-saw effect taking place here. As oil weakens, stocks strengthen, and vice-versa. As a side note, both silver and gold have reversed here, effectively signaling a “risk on trade.”

I am selling off non-essential names, in order to tie up loose ends and raise some cash. My goal is to raise 20% cash and sit on it for more than 30 minutes, if at all possible. Thus far, I am quite pleased with the doings over at OPEN, which is my largest personal position by size. I own a chunk of the stock with evil intentions of routing out the short sellers, GW Bush style, in order to make them seek God.

In addition, ARO, PSUN and APC are showing some strength, all to do with March seasonality. All three stocks, historically, do exceptionally well during the month of March. Let’s hope for the best, but expect something horrendous.

If you notice, iBC has a different look today, as we launched the iBC Financial News Network. It’s a work in progress, so bear with us. As time goes on, the reporting and publishing of relevant information, pertaining to financial markets will increase in efficiency. Although other finance sites do it well, they are missing a key component to their business models: how does it make you money? My mantra, as always, “if it doesn’t generate revenue, I’m not interested,” exemplifies my stated goal to the tee, with this new endeavor. I hope you enjoy it. For those of you who miss the iBCNEWSBOT300: see the bottom of the page for link to feed.

Once again, I encourage all who blog in the Peanut Gallery to participate in my new “news venture” by posting breaking news and listing it in the news related box, by tagging it as “news.”

Also remember to follow the new iBC Financial News Network Twitter account @iBC_Fn.

(Ticker, % of float sold short, today’s gain)
1 LNG 31.6 +32.64
2 CSKI 16.6 +12.42
3 BONT 21.1 +8.24
4 EK 26.9 +5.82
5 AVNR 20.1 +5.41
6 CBST 17.3 +5.36
7 RNOW15.1 +4.71
8 CLWR 30.2 +3.47
9 LNET 31.9 +3.45
10 GMCR 24.5 +3.37
11 YOKU 36.39 +3.34
12 SKY 25.6 +3.29
13 BWLD 16.4 +3.23
14 NVTL 17 +2.69
15 HUSA 17.6 +2.41

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(ticker, % of float sold short, today’s loss)

1 SHZ 54 -12.1
2 CAVM 17.7 -6.96
3 UTA 17.5 -6.8
4 CSR 23.1 -6.11
5 LCC 19.3 -5.5
6 MHR 18.8 -4.53
7 BIOD 20.7 -4.46
8 NETL 23.4 -4.37
9 OSBC 15.8 -4.26
10 CCRT 21.3 -4.13
11 CISG 26.09 -3.88
12 ENTR 50.4 -3.24
13 CIEN 32.8 -3.24
14 RXII 24 -3.23
15 SATC 19.9 -3.16

I sold both, raising cash.

Within oil/gas, HERO (+14%) CQP (+16%), LNG (+34%) and PDC (+5.5%) are leading the charge higher, thanks to escalating violence in God’s sandbox. On the other hand, tech stocks are getting poleaxed, led by losses in FNSR (-35%), OCLR (-17%), OPXT (-16%) and JDSU (-12.8%).

With strength in crude, Airline stocks find themselves on the receiving end of egregious homo-hammers, while refiners, as well as most oil related stocks, trend higher— ever so gingerly.

As cool as $100+ oil is, the market hates it. Every time we uptick in crude, the market legs lower. Trading civil unrest is difficult, especially when it’s an armed conflict. Will it spread to Algeria and Saudi Arabia? If not, perhaps oil is $20 rich here and worth betting against, via SCO. However, how can I put that trade on while the middle east is so volatile?

Answer: I can’t.

Hence, we are stuck with expensive crude, which hurts consumption. Higher crude serves as a tax and Wall Street does not like it. Even worse, oil and gas stocks, aside from the degenerate small cappers, aren’t even benefiting from this shit storm. The market is dying to trade higher. It wants a reason to rally to 14,000 AND MORE. However, I’m afraid that the crude wall being built up on a daily basis will kill this rally where it stands. The downside could be significant, should the high energy prices permeate consumer spending habits.

Until the middle east simmers down a bit, I’m afraid your best trade is a quick one or cash.