My Time Machine is Better Than Yours

Key reversal day in progress. You shall bow down to “The Fly” as he strikes deadly blows to the skulls of those who bet against him.

More on this later.

The market is down 5% from the highs; but the internals are far worse. The average steel stock is down 20% in recent weeks, same goes for small cap tech. Anyone with some skin in this game knows exactly what I am talking about.

The tide will turn and the market will trade higher. Mark my words you little trollops. This market is primed to go higher, specifically for one reason.

THE TURKEY GODS.

That’s right. Don’t think I forgot about the powers of the Turkey Gods and their control over stock prices. This is the time of year when people stuff their fat faces with stuffing, corn and turkey. There is no time to be bearish, quite frankly.

Look, if the market is going to trade lower, it will do so AFTER Thanksgiving—on Black Friday. However, traditionally, this is the time of year for celebration and joyous behavior. We can all get back to ending the world AFTER turkey day.

With my 15% cash position, I am all but forced to trade lightly. I will not go “all in” here, due to the outside chance that the Turkey Gods drop the ball. I will reserve my 15% cash for “emergency” hedging opportunities or “must buy” situations. My current positions are downright dreadful, getting the full brunt of the “homo-hammer” — in recent weeks. I am appalled by the recent action in TEKELEC [[TKLC]] , Flotek Industries, Inc. [[FTK]] , Corning Incorporated [[GLW]] and [[MWW]] . However, that’s life.

In a word, this market is “coiled.”

Okay I Lied UPDATE: I could not help myself. I bought partial blocks of the following: [[CBD]] , Equinix, Inc. [[EQIX]] , CGG Veritas (ADR) [[CGV]] , ICICI Bank Limited (ADR) [[IBN]] and Mechel OAO (ADR) [[MTL]] . I am bulking up on foreign names and Cramer hatred, via EQIX.

I bought 5,000 [[ENTR]] @ $2.40 and 3,000 TEKELEC [[TKLC]] @ $14.90.

Disclaimer: If you buy the above stocks because of this post, you will be accused of being a “communist supporter” and subsequently sent to jail. And, you may lose money.

Forget about what the market is doing right now. The real issue is “How many legs where blown off with the The Stanley Works [[SWK]] for The Black & Decker Corporation [[BDK]] and Berkshire for Burlington Northern Santa Fe Corporation [[BNI]] deals? Do you notice a pattern?

Big deals are being financed again, which spells disaster for those who are short. Literally, it is a financial minefield for those who make a living selling short. So, in addition to having an active ipo/secondary market, we are blessed with a very healthy m&a market too. This is very good news for stocks and the banking industry.

Unfortunately, as of now, the market disagrees with me, by way of a stupid sell off. However, as sure as I am sitting here, it shall rise again—like the sun over Tokyo.

On this decline, [[ENTR]] gets an automatic looksy, as it is always a good dip buy. And, that’s about it for now. Banks are getting ripped apart, thanks in large part of [[RBS]] and UBS AG (USA) [[UBS]] .

Nonetheless, this decline should be temporary and the dip should be bought.

NOTE: On the [[BNI]] deal, give the trannies a look, especially CSX Corporation [[CSX]] , Canadian National Railway (USA) [[CNI]] , Union Pacific Corporation [[UNP]] , Norfolk Southern Corp. [[NSC]] , Kansas City Southern [[KSU]] and Genesee & Wyoming Inc. [[GWR]] . The market cannot go down with this sort of strength in the trannies.

Goldman Tradebot3000 was especially cranky today, jerking the market around like a “homofied” poodle. I see, in the comments section, many of the bearish people, my people from 2008, are making some noise. I will communicate with you, through baseball analogies, since everyone likes baseball.

I am Ty Cobb, hitting .425, spiking people in the face for getting in my way. You are Scott Cooper. Who is Scott Cooper?

EXACTLY.

I am entitled to make errors, especially since I am batting .425, with, 230 hits, 110 runs scored and 100 stolen bases. You giving me advice is equal to Scott Cooper telling Ty Cobb how to hit a curve ball.

Ya dig?

So, if you want to converse with “The Fly” or even offer some picks, just place your balls on your kitchen table and start speed chopping carrots, via blogging in The Peanut Gallery. Since I started iBankCoin, I have made it a point to hire people who show good investment acumen, most commonly discovered in The Peanut Gallery. If you are bearish, seriously, I do not hate you. I love a challenge and enjoy listening to compelling arguments. Do yourself a favor, vent a little in The PG. Moreover, inside of 3-4 months, I might be exclusively shorting stocks again. Who knows?

As for this market: absolutely nuts. I am a little jarred by the volatility and do not have great confidence in anything, near term. On one hand, this could be a great opportunity to get long growth stocks at a discount. On the other, the banks are looking a little dicey here, which may —eventually— lead to another leg lower. If I was going to sell short, I’d sell PacWest Bancorp [[PACW]] and get long Non-Levered ETF’s, like [[DOG]] , [[SH]] and [[EFZ]] .

In short, I smell opportunity and I am man enough to tell you: I have no idea which direction the market is heading tomorrow.

Top Picks: POSCO (ADR) [[PKX]] , Equinix, Inc. [[EQIX]] , TEKELEC [[TKLC]] , Ctrip.com International, Ltd. (ADR) [[CTRP]]
NOTE: The Reformed Broker (no idea what that means) made something clever, for science/blog nerds only.

The market is giving up early gains, with losses led by CRE names. People are just so damned nervous about commercial real estate, especially after HORRIBLE investors like Soros and Ross warned of “big crashes” in the industry. Why do people give those guys a second thought? I mean, they were good years ago, but suck moose testes now.

Within CRE, Developers Diversified Realty Corp. [[DDR]] , SL Green Realty Corp. [[SLG]] , The Macerich Company [[MAC]] and Simon Property Group, Inc [[SPG]] are getting hit.

On the bright side, precious metals are lifting off, partly thanks to dollar weakness. Within the precious metal, Compania de Minas Buenaventura SA (ADR) [[BVN]] , Gammon Gold, Inc. [[GRS]] and Yamana Gold Inc. (USA) [[AUY]] looks good to go. Additionally, Yamana Gold Inc. (USA) [[AUY]] is reporting earnings this week. Considering the recent run in gold, it will be next to impossible for Yamana to screw up the coming release.

Tech is real weak and financials are just sort of laying there, acting stupid. For the most part, the market is lacking leadership, which leaves it open to bear raids.

Whole drug retailers, like Express Scripts, Inc. [[ESRX]] , McKesson Corporation [[MCK]] and Medco Health Solutions Inc. [[MHS]] look great; but who cares? If we are entering a “niche” stock pickers market, it will be very hard for the masses to bank some coin.

My only purchase today was Ctrip.com International, Ltd. (ADR) [[CTRP]] , based upon China’s out of control stimulus. Looking out a few years, China is doomed, especially after their recent foray into loose lending standards, ala West Coast America. However, just like West Coast America, circa 2005-2006, China should do okay, over the next few years.

As I finish this post, the market has reversed and given back all of its gains. Absolutely horrible.

Even with this decline, I am not interested in giving up on the upside. However, for now, I will try to control my anger, via punching holes in the sheet rock and yelling at random people in the street.

More on this later.

I bought 2,000 @ $55.86.

Disclaimer: If you buy Ctrip.com International, Ltd. (ADR) [[CTRP]] because of this post, your dog will bite your face off, while you sleep. And, you may lose money.

Just shut up. You are not qualified to give advice to “The Fly” or any of the other iBC veterans on this site. Throughout the years, through strict rules and guidelines, I have cultivated a small army of readers, who would skin you alive, just to make a little money in the market. For a lot of money, they’d bury you alive in an old Indian graveyard.

Once again, The PPT predicted the near term bottom. Had you followed The PPT into hell on Friday, today, you’d be a richer man. It is, in a word: harmonic.

Truth be told, over the weekend I was a little worried about the current state of events, fueled by people calling me—worried about their net worth. However, once seeing China’s PMI (better than expected) EU PMI (better than expected) and thinking over the huge productivity numbers being reported in the U.S., I knew the market would—eventually—be supported and head higher. Bear markets make for good blogging. I get to scare people and talk about death, fire and pestilence. Nevertheless, I am just going to have to deal with having a boring bull market, much to the chagrin of you graveyard circle jerkers out there.

On this lift, I like POSCO (ADR) [[PKX]] , Corning Incorporated [[GLW]] , Ciena Corporation [[CIEN]] , Equinix, Inc. [[EQIX]] and [[MWW]]

The internet is awash with people who crave for the house of cards to come crashing down, rightfully so. As reported by the good folks at The Glenn Beck Show, President O’bama sucks and the country (America) is no longer cool, partly because China has factories that produce things—all thanks and praise to non-existent labor laws.

So, instead of keeping this corrupt government intact, we MUST dismantle it and its stupid banking system, sort of like how parents give away or discard their children because they suck at sports. No worries, we can always start a new country, as could disenchanted parents produce new/better babies. Everything is going to be alright.

With regards to my investment philosophy:

I made a commitment (to be curse free until Dow 10,500) and I will not waiver from that vow. The fact of the matter is, “The Fly” does not need to curse, in order to blog on a very high level. Always remember, “The Fly” is the Blog Father—anyone who thinks otherwise is liable to have his/her mustache punched off. The Dow will hit 10,500, as sure as I am hating on you “crock-suckers” while typing this sentence.

Many of my new readers, for good reason, believe I am some sort of permabull, who roots for the bad guys and eats steaks as if they were made from paper (I do not eat paper). If you have the time or the inclination, delve into my archives and “rewitness” my Godliness, with regards to nailing the bear market of 2008. Moreover, anyone who believes that I will remain bullish, indefinitely, despite the market saying otherwise, is an imbecile and is more deserving of an electric chair (Death Rowesque), in favor of one of those low end swivel jammies from Staples.

In short, Le Fly puts his money where it makes sense. For the better part of the last 8 months, it made sense to go long. However, if that should change, believe you me, I will show you suckers how to short stocks, with great vigor, and make a large fortune doing it.

Remember, “The Fly” wins all the time, even when it appears he is losing badly.

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

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