Losses Are Good For the Soul

As much as I try to avoid losses, they plague me.  I run away from them and throw m-80’s at them, from the back seat of my 1980’s style stretch limo; but, eventually, they find me. Like anyone else in this business, I am prone to error. Like the old tales of men trying to invent magical elixirs that will let them live forever, I have not been able to eliminate losses from my repertoire of  bad habits. I say “habits”, because I am responsible for my actions. No matter what extraneous events take place, the buck stops with me. It is my goal, as a dignified outstanding member of the investment community, to avoid losses at all costs. But I am afraid, much to my chagrin, my dreams of perfection are nothing more than a grandiose exercise in futility.

Do not misconstrue: “The Fly” is doing very well this morning, as the stock market firms up. My positions are zipping higher and my personal account gains are so great, so extraordinary, I cannot share them with you for fear of bringing on outsized animosity and hatred upon my person. For the sake of my family and fellow bloggers on iBC, I cannot do that. Hopefully, the majority of you can sympathize and understand my plight. For that, I am eternally grateful.

However, what I can share, most gleefully and boastfully, are my client YTD gains of more than 43% aka 20x your average hedge fund manager.

Kids, Le Fly is not playing games here and you certainly are out of your league, well above your pay grade, when attempting to compare yourself to me. To me, buying and selling stocks is as easy as riding a child’s tricycle.

One final note: as this website matures and establishes itself as a viable business, it’s important to keep working in the iBC laboratories for new/innovative financial products/tools. As you know, iBC has the PDS and PPT systems under its grande umbrella, both algorithm based systems that are meant for institutions, but retailed out to the proletariat. I am pleased to announce, after many months of hard work and deliberation, on the part of the iBC crew: 12631.

Do not ask what 12631 means, for it is none of your concern. Just know, it has my stamp of approval and will serve as an addendum to The PPT. In other words, IT WILL NOT be available for proletariat usage. It will be available for PPT members only.

Good day to you.

We’ve been working on something you will like.

Yen down, Euro up, Treasuries down, oil up and BP tame equals a higher stock market.

For client accounts, I closed flat, as my newly formed VXX position negated my long directional bets. However, in my personal accounts, which are far more aggressive, I made stellar gains, as I reversed my FAZ position and went long TNA. Additionally, I bought a sizable position in STI, for personal gain only.

All in all, today was a solid rebound day. It’s also worth noting, The PPT called it again. However, despite today’s run, I am 20% hedged in VXX.

Good day to all of you.

Do not believe for a solitary moment the market will let you rest. Do not think you can go on vacation and not fall victim to extraordinary swings in your bullshit account value. Ever so quietly, CDS spreads have been widening for Ireland, Italy, Argentina, alongside a host of other third world countries. As the sense of recovery wanes, investors will continue to bug the fuck out, like Gremlins eating after midnight.

To counterbalance the pervasive and ever so cumbersome realities of “news,” markets are being buoyed by insidious governmental agencies, in order to keep the ball rolling downhill. Most money managers are willing to turn a blind eye to “news,” as long as valuations meet their criteria. You will find a much more objective group of managers in the hedge fund world. However, due to their over-cautiousness, most will underperform. For the first time in awhile, the advantage is in the court of the average retail investor.

Gone are the days when information was exclusive to a few fucktards on Wall Street. You no longer have to soil yourself when the markets nosedive 1,000 points inside of a short 30 minutes. Thanks to a myriad of leveraged ETF’s, you can execute short sales in a blink of an eye. If you have enough time and dedication, you can do better than the assholes who declare themselves “investment gurus” on the teevee and take your little bullshit Zeeco account and turn it into something meaningful. Naturally, being a proud member of The PPT will help a great deal.

If you are serious about making a living out of trading/investing, invest in your business. Do not get 2nd rate equipment and data resources. Do yourself a favor and buy the best, in order to get an edge. Wear a top hat to work, if it makes you feel better about yourself.

Bottom line: “Brilliant” money managers are bragging about 2% YTD gains. I piss on that and them. Do better and be sure to boast about your victories whenever the opportunity arises.

Top picks: VXX, TNA (go fish)

This pretty much sums up today’s market action

I did not like the weightings in my portfolios, so I changed them. As a result, I bough the following names:

FLS, NVDA, STI, TNA

As you know, I sold out of FAZ, solely based upon my respect and admiration for The PPT.

Okay, now back to sandwiches.

Here are all of the OB/OS signals in PPT history, layered onto two charts.

Like believing in God or Santa Claus, faith is required when investing. Whether you are long or short, you need to believe in something in order to have conviction. Let me tell you right now, without conviction, you are not going anywhere. You will fail.

Right now, if you are bullish, you have faith in the Fed and low rates super charging the economy. You believe, due to low rates and an accommodative Fed, we will reflate ourselves the fuck out of this giant mess, regardless of inflationary dangers. If you are a bear, you have faith in human error and all of the chickens coming home to roost NOW. Being bearish requires a certain type of brain, one that is disconnected from the “matrix” and able to turn a disaster into a profit. Not too many people are able to do that effectively.

There is a third camp, one that is reserved for the most distinguished men on Wall Street: the sandwich camp.

If you are into not giving a fuck about the bulls and the bears and only interested in banking coin, then now is the time to eat a sandwich, dressed with very little condiments, might I add. This is my camp. I have no loyalty to anything but the bottom line. I do not care about your catalyst, only the end result.

With regards to this tape: we are OVERSOLD and due for a bounce. However, I am afraid there are many fucked up mountain roads to navigate before we are out of imminent danger. I will not sell any of my longs, unless we climb 2-4% from here. Conversely, I will not sell my VXX, unless we dive 2-4% from current levels. Essentially, now is the time to do nothing.

UPDATE: I sold out of FAZ and bought 10,000 TNA @ $35.65.

As world government bodies try to paper over egregious and insurmountable losses, weird shit is happening.

Weird shit #1:

Japanese Yen appreciation. What the fuck is going on in Tokyo? That fucker is booking higher as if the carry trade itself fucked itself into a murderhole.

Weird shit #2:

Euro appreciation. I thought the Euro was going to zero? Are we past that stage in our lives yet or no? I just need a little clarity so I know what to fear monger about.

Weird shit #3:

Oil is not going down. Go fish.

Weird shit #4:

The SEC settled with Goldman Sachs on the same day BP capped the fucking gusher. I am a big disbeliever in coincidences.

Weird shit #5:

2010 is the hottest year on record, yet global warming is a farce. Blame the sun.

Weird shit #6:

NYC is fining people for stealing trash, as they deem it to be a “valuable commodity.”

Weird shit #7:

Someone cornered the cocoa market last week and not a peep about it. Some group of jackasses bought all of Europe’s cocoa supply. Can you say Willy Wonka?

Weird shit #8:

Treasuries are still strong as fuck and yields are absurdly low, pointing to a double dip recession. Low rates are not creating jobs, only offering safe haven for banks, via spread.

Weird shit #9:

China claims to be growing at 11%, yet steel mills are declining in capacity utilization.

I can continue: but why bother? You need to stay focused on all this “weird shit,” for eventually it will end up killing you. Mark my words. At any rate, I will be inserting all of this data into my “calculator brain” shortly and decide where I am willing to go with my assets, over the short term.

Some of you old school ibc’ers are well aware of the story pertaining to “Jack the Convict.” For those of you who are unaware, check the sidebar tag “Important Matters” in order to get schooled.

Anyway, I am happy to report that Jack is back, only this time in the form of a Crustacean! The story is good, but the ending is yet to be determined. So, once the story concludes, I will be certain to update you via an Important Matter post.

The stock market is under some sort of “mountain magic” spell, whereby phantasms get into the wires of the trading robots circuitry and make it go down. Why else would this market go down, amidst such a wondrous recovery? This recovery is so good our Prezident deems it unnecessary to work. Instead, he parlays around the mountainside or his local golf club, in order to enjoy a little r and r.

Either way, “The Fly” is like a 200 foot oak tree that shits on your bullshit chainsaw. Scientifically, I cannot be defeated, since there is win in my blood.

Back to your regularly scheduled fun filled sunday afternoon.

No fucking idea what to expect next. Anyone who says they do is a despicable liar, deserving of the electric chair.

FYI: The way I calibrate my asset allocation, for precision, is to monitor account values every hour and see if it’s working. If accounts start to slip, I adjust accordingly. My current plan is to freeze my accounts, via hedges, on sell offs and buy the dips. Thus far, it has worked like a charm, as we fucking grind our way to oblivion.

Quit getting all jelly ass on me and do what you were born to do. Well, actually, don’t do that, since most of you were born to mow my lawn. Today’s sell off came as a surprise to many, mainly because we like parties. It’s human nature to enjoy a good cocktail party. We dress ourselves up like penguins and walk around with top hats and canes, whenever invited to high end NYC soirees.

Some of us mingle amongst the crowd, complimenting each other about the “luxurious and decadent design” of pocket squares or prep school blazers. Others, lurk in the background, plotting to exact revenge on the person(s) who sent out invitations. We all have a role in this stupid world. Some are commissioned to hoodwink billions into war. Others, on the other hand, create scams based upon peace. As for me, I just bank coin.

Life is nothing more than a series of coincidences exacerbated by our actions.

If you find yourself getting ham and egged today, long equities into a sell off: chill the fuck out and put things in perspective. We are 100’s of points higher than the recent lows and most of us have solid YTD gains. Today could be the beginning of a severe sell off, or a one off event. Either way, it’s important to be in control, instead of relying upon hopes and dreams, like most fucktarded money managers featured on the teevee.

CDS spreads are widening for Ireland. Does that mean Ireland “is next”? No, but they are at risk of being “stealth raped,” pardon my terminology. What to do, what to do, what to do?

One word: HEDGEYOURSELFBITCH