BEARS SURRENDER IN EGREGIOUS TRADING

[youtube:http://www.youtube.com/watch?v=JlAUdPTr6ZI 550 400]

Many of you are besides yourself, pondering about the never ending stock market rally and why people are buying stocks.

I am going to tell you in very clear, concise words, as to why we are boot stomping ugly, monstrous bears higher

The market is not going up because of the Fed, Treasury, Banks, CRE or Pig Flu. The semiconductors marked the bottom, back in March, based upon a sharp uptick in demand, partly created by lack of supply.

In other words, factories were shut down. Utilization rates were saddled in the 30% range. Then, all of a sudden, the consumer showed signs of life, as they always do entering spring. Frantically, factories reopened, sending utilization rates upwards of 60%, almost doubling from the Jan-Feb levels. Due to lack of supply, prices for chips, packaging, testing and other services spiked, allowing companies like TSM, UMC, SPIL, ASX, TQNT etc, beat street estimates—due to better than expected margins. For fucks sake, even TXN beat the street.

Since then, the consumer has not disappointed, buying up flat panel lcd’s and smart phones, like they were candy bars.

In short, the rally will continue because inventories need to be restocked. Until we see utilization rates drop, the market will go higher, or sustain current levels.

I repeat: we will not trade lower, unless factory utilization rates head lower from here.

Going with that theory, I am adding to my CDNS position, ahead of earnings, based upon them sucking the tits of TSM.

NOTE: I bought 20,000 CDNS @ $4.75

I bought 20,000 MSO @ $3.62.

Disclaimer: If you buy MSO because of this post, your neighbors will spread demeaning rumors about your manhood. And, you may lose money.

No respite. No mercy.

I have given you plebs fair warning to cover your shorts and play the upside. Some of you, wildly and cantankerously, posted stupid charts in The Peanut Gallery, rationalizing your wrongness. “The Fly” was wrong, with regards to his short positions, three weeks ago. However, thanks to his “calculator brain” and space alien magician ways, he corrected his blunder—allowing him to reacquire all lost coin and more.

See, that’s what I am all about, while you are just some guy with a ruler and a pencil, trying to chart your life into something better. Life will continue to suck for you, sadly enough, because your gene pool is tainted with idiot DNA.

As for today’s trading:

It will be splendorous. The economy retrenched to the tune of 6.1% in Q1 of ’09. However, consumption was up, and that’s all that matters. Everyone knows Jan-Feb was dreadful. People with sense are focusing on the obvious uptick now, dating back to March. The big question: when will the inventory restocking cease? Will the economy continue to reflate and if so, when will the recession end?

Luckily, for the bulls, these questions cannot be answered now. We will have to keep a mindful eye on consumption and factory data, prior to making a determination.

In the meantime, feel free to press the hot blade of upward momentum upon the necks of the stubborn, the destitute. Let us rejoice, via large buy orders of DELL, CROX, ATHR, BRCD, ERX, PCX, SONS, WRES, ARUN, CAVM even LVLT, dammit.

The time for being a loser is over. Go do something productive, else get “Dykstra’d” in short order.

[youtube:http://www.youtube.com/watch?v=mjc_jQo_GwA 550 400]

[youtube:http://www.youtube.com/watch?v=3wz37kySWwQ&feature=channel_page 550 400]

Wow, days like this remind me why, deep down, I fucking hate the market, as if it was trying to steal my money. Oh shit! I think it is trying to steal my money.

Treasuries got murdered, sending rates through the roof. At the same time, the yen was strong, and the dollar was weak, while crude sold off—as did gold. Banks got boot stomped, but CRE was strong. I don’t know how long it will last, but the market is being directed by the action in CRE names. Look at the correlation between IYR and the Dow, lately. Uncanny.

In all fairness to the bulls, the market should have been “Dykstra’d” today, considering the banks were so weak.

Days like today remind me why it is so important to stick with a thesis and try not to overreact to the intra-day volatility. The market is incredibly volatile, yet within a very tight range. My guess, the market is due to make a decisive move, up or down, shortly.

Obviously, I have a multitude of long positions, so you know my bias. But, admittedly, holding bombs like LVLT remind me, in a very harsh way, how quick yesterday’s winner can become today’s loser. In hindsight, not selling LVLT was a grave error. But, I really did like the numbers posted this morning. Apparently, not too many people agree with me, at the moment. I ate rocks on this fucker today.

My positions in CROX, SONS, CECO and ERX fared okay, while other lost a percent or two.

In short, this market is one great idiot hamsterwheel, full of cocksure investors. In reality, we’re all guessing. The question is: who can guess better?

You chicks are getting rolled on.

Your faces shall come under assault from egregious shots of grape, derived from my antique 18th century cannon. There will be no quarter given to anyone betting against my positions, especially those who target my degenerate penny stocks. It is in your best interest, mind you, to flee from the battlefield, via cutting your losses, and going home to Mom’s house for a nice plate of lizard stew.

“The Fly” is heavily caffeinated this afternoon, by way of large cups of coffee and small tins of energy soda. Let it be known, I have made it my business to kick old/overzealous men down idle manholes (old men short stocks). For those of you who are above the age of 47 1/2, I strongly advise staying away from urban areas, where manholes are readily found. And, if you were not aware, please never visit iBankCoin again, for you are not welcome.

As for today’s trading:

The underpinnings for a short squeeze are present, with tech and CRE leading the way higher. However, it’s worth noting, those dastardly banks are knifing lower, based upon some silly notion that they need to be solvent, in order to cook their books. Frankly, the whole banking two step dance, being choreographed by the O’government, makes me sick. I want no part of the banks or any other financial related name. My time is best served picking at depressed names, readying to poleax short sellers into muddy gravel pits, like WRES (hat tip CA) or CROX. You must have a large cocks in order to buy CROX (I had to say that).

I sold out of my entire FXP position today— and remain with several low profile inverse etf’s, including, but not limited to, SRS, FAZ and a little EEV. It’s terrifying to think that I am long equities into the teeth of the economic downturn. Common sense dictates to raise cash and hedge my bets. In all fairness to my case, I have been raising cash, over the last week. My buys have been much less than my sells. At the present, my cash position is upwards of 10%.

I am not sure how long this “inventory restocking” trade will last. However, while it’s here, I intend to pick the quickest movers and flick cigar ashes at you piker brokers on Wall Street, trying to be “The Fly.”

NOTE: Scientifically, it is impossible to be “The Fly,” so quit trying.

UPDATE: I bought LVLT, between $1.05-1.07, OVTI @ $9.06, ATHR @ $17.30 and WRES @ $1.72.

UPDATE II: I bought 5,000 [[BRCD]] @ $5.55

You didn’t think all of the fat, spoiled rotten American women would stop buying $600 handbags and $500 slippers, did you? Despite the economic tailspin, Americans are accustomed to spending their savings and more. According to recent data, due to the rough economy, the U.S. savings rate has gone from negative 1-3% to positive 5%. So, in other words, people have money to spend.

The weather is nice and people are generally degenerate losers, who would rather buy a 5th plasma than save some money for their childrens college fund.

Here’s the play:

Stop shorting stocks, for now. It’s a losers bet. Until we see the recent uptick in the economy reverse lower, you have to buy the dips.

On my menu are a variety of depressed netowrking, semis and retail stocks, like CROX, ODP (gone), SONS, ALU, LVLT, ARUN, CAVM, OVTI, DELL, CDNS and ATHR.

NOTE: Today’s consumer confidence spike was the largest since 2005.