Sticky Fingaz – Jackin For Beats

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I could not just sit back and watch myself get obliterated. It’s not in my blood.

I sold most of my ERY, FXP and all of my SMN, for losses.

With cash on hand and proceeds from inverse sales, I bought the following: URE, C, BAC, CBL, ABX, FAS, TNA, GE and UYM.

I kept my SRS, FAZ positions intact. My goal: stop the bleeding and make some quick money into the meat grinder.

My guess, we print a close at or near the highs of the day. Then, we gap up tomorrow. I want to fade tomorrow’s gap, via sales of my long positions. However, at the moment, my appetite to short this lunatic market is nil.

Zero percent. I cannot believe we are at zero percent. The market is shooting first, asking questions later.

My knee-jerk reaction was “wow, that’s fucking nuts.”

After thinking about it, I am worried. Not worried from a short position point of view, mind you. I am worried for the stability of the nation, for my kids.

How will our currency hold, with zero percent Fed funds rates, zero percent t-bills and 11 trillion in debt?

Without a doubt, gold should appreciate here. However, that does not mean it will, at least not right away.

So, lety me get this straight:

President Obama is going to print another trillion dollars for a stimulus program, amidst a zero rate policy? How?

People point to Japan and say “we are going to be like them.” However, the big difference is that they have a savings rate and account surplus, while we are drowning in debt.

Maybe we just reflate like a motherfucker out of here and drive up the prices of everything. Or, this experiment fails and ends with the default of the U.S. Treasury.

UPDATE: Feeling the bullish tone, I bought C, ABX, TNA, UYM and FAS.

UPDATE: I sold out of most of my ERY and FXP, taking losses in the process. My buy list is broad and ranging from banks to gold.

At this point, it’s useless to talk about the mirage called “Chinese growth” or how fucked the U.S. is, with its new/cool moral hazard laden zero interest rate policy.

For most of you, pikers at home trading the web, the next 2 hours is all that matters.

So, with that in mind, I suggest avoiding being too short or too long. The tone is already bullish. So, I would not be surprised to see the market sprint into the close. On the other hand, if the market “sold the news,” that would not surprise me either.

With my money, I will refrain from overreacting to today’s market trickery. If anything, I might execute some trades, after 3:00.

As cool as the market is today, with GS and MS leading the way, big money is still piling into treasuries, in a very Madoff sort of way.

On the long side, I like FAS, ABX and CBL for a trade.

An elderly women, named Bertha, sitting in a wheeled chair, slaps thick slices of liverwurst and olive loaf onto thin slices of rye bread. As the conveyor belt proceeds, aged Orwellian machines crank out ample amounts of mayonnaise onto the lunch meat and bread combo.

Then, the sandwich is wrapped in recycled cellophane, and tossed onto the dirty factory floor, where it will wait to be packaged and delivered.

Twenty hours passes and Bertha’s mayonnaise delight is still on the factory floor, being kicked around by janitors and mayonnaise machine engineers. Then, all of a sudden, “Gus the delivery guy” spots the lonely lunch meat, picks it up, then places it with today’s fresh batch.

Gus travels far and wide to deliver these delicious concoctions, to a small 7/11, just north of The City of Retards.

Gus arrives at his destination and places the sandwiches in decrepit sandwich bins, when a small man walks in and grabs one from Gus’s hand.

The small man hops along to the counter and pays for his sandwich, which cost him $3.39.

Just prior to taking a large bite out of this liverwurst/olive loaf/mayonnaise holy trinity, he rips off a label that says “Made by Bertha.”

I bought 10,000 ABX @ $33.56.

Disclaimer: If you buy ABX because of this post, Santa Claus will carpet bomb your chimney this Christmas. And, you may lose money.

If you are trading on a Fed day, be careful. Historically, Fed days offer misdirection and heartache for investors. Because of this, typically, I opt to do nothing, with exception to day trading.

Meaning: I have no interest in adding to short or long positions, prior to the Fed decision. Even after the Fed decides, the market can drive one crazy, knee-jerking back and forth.

Nonetheless, following bad news (GS, home starts), the market is very optimistic this morning. It makes no sense to bitch and complain about “what the market should do.” Instead, look at what the market is doing, and trade accordingly.

For now, my short term swing trades/day trades will be on the long side.

Specifically, I am looking at commodity names, especially in Ag, and select tech. When I decide on the exact names, I will post them.

With regards to my shorts:

They will suffer today. However, I am not in them for one or two days moves. So, in the meantime, I will utilize some of my cash to scalp a few trades.

NOTE: The news is horrific and the market SHOULD be down. So, on any slip up, I will be sure to stop out of any longs that I decide to get into.

Think big picture stuff for awhile.

GS just embarrassed themselves with a loss of $4.97. Sidney Weinberg is rolling over in his mausoleum.

Chinese vehicle production is down 15.9%.

Chinese iron production is down 16.2%

Chinese steel production is down 12.4%

In order to finance “stuff,” China is considering a tax of sorts on their coal industry. Analysts believe, if done, it might reduce the value of Chinese coal stocks by 40%.

Latest CPI figures point to deflation.

U.S. housing starts at a new low: 625,000, down 18.9%.

U.S. interest rates are approaching 0%, a la Japan. The only difference: Japan runs account surpluses. We are big ass borrowers.

The value of U.S. homes declined by 2 trillion dollars in 2008.

And the silver lining:

BBY beat the street this morning.

Maybe things will not get worse?

Look, stocks are always the best value, when things look the crappiest. That’s what the asshole dip buyers are betting on. They are “betting,” not investing, that the U.S. economy will somehow, miraculously, rebound and send stocks through the roof. In my opinion, barring any short term moves, this is pie in the sky gobble-grabble (that phrase means nothing. I just made it up).

In other words, all indicators are pointing to a weaker economy in 2009. While it’s true, if you wait for the economy to turn up, you will miss the lion share of the stock market gains, since it is a forward looking Indian Casino. It’s also true that in order to presume the economy will turn, one needs a modicum of good news, something/anything that can be a “mustard seed,” to borrow a phrase from the Great Larry Kudlow.

In my opinion, we’re just not there yet.

However, that does not mean men in green leotards will sideline themselves today. For the love of green grass and purple goats, THE FED IS GONNA CUT RATES TODAY. YAAAAA-HOOOOOOOO.

Short sellers are responsible for the following events:

The Bubonic Plague

Hiroshima & Nagasaki

The Kennedy’s

The General Slocum Steamship disaster of 1904.

The Influenza Epidemic of 1918.

The Ukraine Black Famine of 1932.

The Lisbon Earthquake of 1755.

The Collapse of the World Banking System of 2008.

The Bhola Cyclone of 1970.

The China Floods of 1931.

The Collapse of Lehman Brothers of 2008.

The 8th Century Hail Storm at Roopkund.

The Iranian Blizzard of 1972.

The Peshtigo Fire of 1871.

AIG

The Shaanxi Earthquake of 1556

Mount Tambora

The Bengal Famine of 1770.

The Dutch Famine of 1944.

Fannie Mae/ Freddie Mac

Holodomor

The Stalin Purge

General Motors

and many many more.

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