I’m now down over 3% for the day, even my haptic play, IMMR, which was soaring earlier, has reversed and turned to red. I am enjoying outsized losses because my appetite for risk was outsized. In the event the market continues lower, I will endure more losses, up to 10% from the highs. Being that I was up 1% this morning, today’s reversal is -4% for me. I will see this market out, giving it the benefit of the doubt. However, I am not prepared to bet my life on it and will cut losses at the -10% mark.

Everyone is so dramatic when it comes to Fed statements. We’ve been here before. Why does everyone forget the answers?

Even if the Fed ended QE, do you really think they’d allow the market to tank for an extended period of time? Eventually, we all have to behave like adults, without the assistance of the Fed. However, the very fact that there is a bid under this market, via an activist Fed, should be enough to quell any Fed withdrawal symptoms that might emerge in the future.

All in all, today was a horrible day. I hate reversals. They always spill over into the net day. But this is the price of admission for the gamblers parlour. Losses should never come as a surprise.

What’s the point?

I’ve been waiting for a significant, earth shattering, correction since 2009. Yes, I’ve been long and always bullish. But deep down I’ve been scared of a 2008 redux. Like many others, I was shell shocked by the crash, even though I was 100% short.

If you’re worried about market pullbacks, you obviously can’t “hold your butter.” How do you expect to make money if you’re not willing to lose some too?

For the day I am down 1.5% and loving it.

Someone put relaxer in my FRO. I’ll blow it out like Black Dynamite tomorrow, jive turkeys.

Haptic technology is a money maker. Immersion technology will be in the new Sony playstation and most likely the new X-Box, which was announced yesterday.

Sporting gross margins of an astounding 99%, embedded in all of the cool non-Apple devices, like Samsung, this name will continue to gain traction as Tim Cook destroys AAPL from within.

Other than that, “The Fly” has STOPPED TRADING, opting to sit back with his holdings, blowing cigar smoke into the vaulted ceilings. Don’t think for a second we are geniuses for making money here. It takes balls to be a successful investor/trader/ball player. The meek will never inherit the earth, when there are people like Rumsfeld out there.

Out of all my positions, I like the look of IMMR, MT and FRO best.

Just know, it takes balls to make babies. If you find yourself baby less and without coin, pal friendo, you have no balls.

Toll Brothers beats by $0.06, reports revs in-line (36.01 )

Let’s have a look at residential construction, on an apples to apples basis, to see if there are any disconnects.

Fastest growing by earnings:

RYL, TOL, MTH, MDC

Fastest growing by revenue:

TPH, CHCI, MDC, RYL

Most levered, based on debt/equity:

BZH, HOV, KBH, SPF

Lowest PEGs:

TOL, MTH, RYL, MDC

Least owned by Institutions:

CHCI, HOV, SPF, AVHI

Lowest FPEs:

HOV, RYL, MTH, NVR

Lowest by P/B:

SKY, AVHI, SPF, TPH

Lowest by P/S:

SKY, BZH, HOV, CVCO

Smallest by market cap:

SKY, CHCI, AVHI, CVCO

Breakfast is austere, nothing more than a cup of earl grey tea and a piece of toast or maybe a greek yogurt, with the sounds of classical music being played, gently in the background.  I turn on the CNBC and chuckle as the comedians tell funny jokes to the cameras. I pen a blog, email important people, text Jeremy (our IT guy/my partner on the site) threatening messages regarding the servers and then sit down to give the market a look over.

I have a list of stocks that I am willing to buy, procured, diligently, the night before. I look it over and think about a few of the names, request research on the ones that interest me, then watch the market open for trade.

As soon as the market opens, I turn into Dr. Jekyll, screaming at people and punching plants in the face. All of my watchlists are immediately shredded to pieces, then burned. Frantically, I search through the most active list and most up list, looking for trends. I want to see a common theme. I am looking for correlations and reasons to buy into a given sector. If the sector isn’t hot, I’m not interested. This is trading after all, not investing.

From about 10am to 11, I speak to some friends about the markets, pick their brains for ideas.

I do another blog.

Over the past few weeks I’ve been spending my trading days inside 12631. I love it so much, I don’t think Chess and RC will be able to kick me out. Jeremy tells me over the past week 12631 broke all activity records in its 2+year history. The room has never been so lively. All day long I am posting thoughts about stocks that pop up on my radar inside 12631, before I buy them or even think about buying them. It’s just a great place to hang with people who are serious about making money. Hat tip to Chess and RC for that.

I switch back to The PPT and post comments in there regarding stocks that look good, maybe create another screen to find some trades for members, or post some research.

I find a stock worth buying.

For the next 10 minutes, I am entranced with getting orders filled. Typically my trades are anywhere from $50k to $200k per, with normal positions sized up to about $2-3 million. I know to some that sounds like a lot, but for people in my industry, it’s chicken scratch.

When I am buying stock, I do not micro-manage the fills. I want in the stock, so I buy it. If I am afraid of moving the stock higher, I buy small, with plans to buy more later.

I blog again.

By the end of the day, I have probably blogged 5-10 times, spoken to 15 people, left 10-20 PPT messages and 50 12631 comments, filled 10-20 orders and sucked down 4 oversized mugs filled with the blackest earl grey tea (milk and honey) the earth has ever produced.

Then in the after hours I build a watchlist of stocks to buy for the next day. You know the routine: rinse and repeat.

NOTE: Someone just reminded me that I tend to chat it up a bit on Twitter too, yelling at the internet in grossly sardonic manner.

I’m long 1.2 million shares of FRO into the bell. Let’s see how I fair tomorrow.

I was +3% for the day

In summary, I am at new highs, +32% for the year, up more than 3% today.

My largest positions are JIVE, FRO, YZC and MT, in no particular order.

I’m also long and liking ANFI, IMMR and MCP.

Things have been very fluid and I am still liquid for 10% of assets, which are in cash. I’m also not limiting myself to cash on hand, open to the idea of using leverage for trades.

Eventually the market is going to stop going higher. Until then, I’ll keep trading whatever the people crave.

Shares of HLF are halted for trade, news pending.

Montauk Bill Ackman is short to the tune of $1 billion dollars and is now underwater on this position, after driving HLF down into the $20′s.

Is an Icahn bid coming?

Stay tuned.

UPDATE: It appears HLF might name a new auditor. False alarm.

UPDATE II: PWC will serve as new accounting firm for HLF.

It’s gonna go.

These stocks are coming in hard off their highs. I would not bottom fish them today. Many of them are overdue a 20% beat down.

Seek risk elsewhere.

I followed The Devil and bought a little MCP, only 10,000 shares. I will hold it for a week.

Other than that, I am waiting for my shipping stock, FRO, to explode to the upside. I am long 1.1 million shares and know, without a doubt, the stock will be heading higher over the intermediate term.

In summary, risk is coming off the table now and it’s a glass of nitroglycerin. Do not try to catch it.

Let me entertain myseld by affixing rudimentary valuation comparisons in order to justify higher prices.

Year to date, who are the laggards?

EMKR (-15%), STP (-45%), DQ (+15%+), STRI (+23%)

Who are the cheapest on a p/s basis?

STP, CSUN, SOL, HSOL, JASO

Lastly, who are the most impaired on a debt/equity basis?

STP, CSUN, LDK and DQ

As an aside, I’m thinking it’s time for the shippers to run again, hard-core, 1970′s pornographic style, extra mustache. Morgan Stanley issued a bullish report on them yesterday.

See?

If the shippers are gonna run, solar style, the following names have the best chance of ripping.

GNK, FRO, EGLE, TNK, NAT, VLCCF, DRYS, GLOG, DSX, NM and BALT.

Ding-ding-ding– you can be a winner too. Step right up and try your luck. There is a winner each and every day.

We’ve moved past the frivolities of fundamentals and solvency, now it’s time for us to invest in complete mirages, cardboard companies (literally companies with building made out of cardboard, like Hollywood sets) who don’t do anything but report spectacular revenue and earnings growth. We have moved past corporate governance to none at all, audited with the intent to defraud. The trick is, as always, is not to be the last man out of the door. Be sure to kick, punch and stab your way out of these stocks I am about to unveil to you, for they are the very lowest of the low–THE BOTTOM OF THE BARREL, scum of the earth.

They shall trade higher and now.

Chinese Lotto Guys, 2013
STV
CCCL
SVM
SUTR
YZC
XIN
EJ
GA
HOLI
AMAP

There will be others. When you buy these names, do so under the veil of secrecy, wear a disguise and cloak your person. Should anyone find out you were speculating in red chinese faux companies, they will think poorly of you. Since 2013 is all about plutocracy and indulging oneself with free money, I see no reason to assume these low brow names will be next to cross the many lists of vagabond day traders.

However, since he is new here and absent from the blogging world for more than 4 years, I think it’s my duty, as warden of this site, to highlight the work of The Option Addict. Some of his recent picks include RSOL @$1.87, BIDU @ $91, WFR in the low $5′s, I can go on. When it comes to playing technical breakouts, combining expertise of the options markets, no one beats OA. Truth be told, some of my friends in the money management business have already taken a quick liking to his style, without my telling them to check him out.

As for the markets: we are still heading higher.

We’re sweeping legs here at iBC, all day long–each and every day.

Top picks: JIVE, MT, FRO

UPDATE: I sold out of ARG, for the $100 roll.

Fast forward 15 years and I am making the money my mentor once bragged about; but I don’t feel fulfilled. Whatever I am making, someone is making more. It’s the never-ending spiral upwards, the plutocracy if you will, that has me wanting more.

As I talk to you small plebs now, I am sure you feel comfortable in your housing tenements, watching CNBC from a black and white television. Just know, I don’t feel sorry for you. As a matter of fact, I have no feelings at all, whatsoever, as to your prospects, since I am only interested in my own.

With that being said, ironically, you stand to benefit a great deal from my obsession by siphoning off my brain stem for cogent stock ideas.

As you read this diatribe, I am up more than 2.7%, led by YGE and CZR.

Of course I think both trade higher, as well as SOL, IMMR and ANFI. However, if you want my single best idea that has yet to make the rounds thus far, have a look into JIVE–you turkeys. And I mean that in my most sincere way possible.

At the top of the solar degeneracy is JASO, RSOL, DQ, TSL and STP. Pray tell me, why the hell are you still waiting for silver to turn around?

Here are some other names that are exhibiting the characteristics of a head being placed inside of a vise, then squeezed.

UNXL
YRCW
RPTP
SZYM
BZH
ROSG
JRCC
YY
MCP
BKS
and one of my personal favorites ANFI.

I’m in idea and trading mode. Pardon the absence of prose, as I am busy banking coin at a criminal rate.

The hottest stocks in the space have been SCTY, WFR, RSOL, GTAT, CSIQ, SPWR and YGE.

Laggards include ASTI, TSL,FSLR, JASO, EMKR and JKS.

The most under the radar plays are ENPH, STRI and HSOL.

Silver is off the lows, which was more than -8% this evening.

If you’re still in gold/silver, you deserve to lose money. The trade has been broken, man, for over a year. If by chance, you tried to scalp a bottom, get out ASAP. Don’t let a bad trade become an investment, especially when stocks are climbing 30% in a day.

The whole precious metals thesis is homosexual and completely inane. It’s supported by hunched backed creatures, who live in different realms, think about the world in different terms. These vile men view life as something one must endure, struggle, instead of living freely–without regard for austerity or hard living.

The generational top has been in for months. You’re just too god damned stupid to realize it.

I am looking for stocks with better than 3 (out of 5) technical ranking and % of shares sold short more than 10%.

Here are the people’s best short squeeze ideas.

(tech score/% of shares sold short)

XPO (3.32, 22%)

Criteria: I want trash, low float, low market cap, about to bust loose, preferably with big short position. PPT members can post screens in the comments section. If you’re not taking this off time to do research for next week, you have no right managing money.

Let me run through some back of the envelope numbers for you, as we enter the “multiple expansion” phase of this rally.

-72% of companies in the SPY beat earnings expectations.

-Earnings for 2014 are expected to come in around $123.

-The median PE multiple for the past 30 years is around 15x.

-Assuming companies will meet expectations and not smash them, the SPY should trade up to a minimum of 1,845.

-Considering the zero interest rate policy and assumed economic recovery, led by housing, including the fact that $123 in earnings is too low of a number, let’s assume the market trades up to 16x eps.

With all that said, based upon historical precedent, the market has another 17% of potential upside before the year ends–effectively putting the Dow at around 18,000.

The gimp is out and he is playing.

Top picks: YGE, FRO,  ARG

UPDATE: I bought JIVE–because it’s going higher.

For now, the proceeds will remain in cash. However, I am tempted to buy a certain solar name with them.

It was just reported that the Canadian inflation rate slooowed, like a glass of molasses, to an annual rate of 0.4%. Very soon you will have no choice but to endure the horrors and tragedy of deflation.

Your currency shall perish and so shall industry.

On the other hand, down in King’s Landing, things are going swimmingly. The country is very powerful and our natural gas fields are the envy of the world.

In other news, it appears my JRCC trade has revived. Do you know why I am still in the name, after declaring it to be a “dead trade”?

The answer is very simple: I am able to, mind you, hold my butter–because of the fact that my gains are outsized. I have the luxury of holding losers and waiting, even averaging down, because I have conviction–beliefs.

Do you?

Putting my positions aside, I am looking for new ideas, always. There’s a homerun out there for the picking. We must work diligently to scour every corner of the market.

Here are my top 10 short squeeze plays for tomorrow. Naturally, this changes the moment the market opens.

HCI
PKT
IRG
IDIX
FRO
BDBD
SUPN
FOLD
INFN

There are a few hundred names that still look good. But, as of right now, these look most tradable to me.

NOTE: The free trials for The PPT and 12631 have ended, officially. We gave you an extra trading session. I hope you enjoyed your stay, being part of the club has its privileges.

I’ve been tempted to buy JIVE, BPI and SUPN all day. Instead, I’ve watched them outperform, as my portfolio of toppiness, well, topped out. I’ve also been tempted to buy VXX; but that’s just revenge trading on my behalf, as I am still pissed off for losing money on it for 3 years in a row.

Perhaps The Devil is right and we’re topping out. He’s short the indices and GS, paired with some of the most illiquid/annoying longs known to mankind. I just can’t get myself to buy CLIR upwards of $5.

Today’s tape really pissed me off. If I started off the day down, I could easily accept it. But to be up 3% then get swallowed whole by a shark, like a small piece of shrimp, has me punching holes through the sheetrock today.

My one silver lining is MU. I’ll sell the balance of my holdings north of $14.

If they’re successful in purchasing new fuel efficient ships and day rates pick up, the stock is heading for $10+. Therefore, a person, such as myself, doesn’t amuse himself with the frivolities of a one day spike, burgeoned on by nameless speculators– who are only interested in quick–whore like–profits, promulgated by their proclivity for illegal substances and extra-marital affairs!

“No thank you,” said the gentleman in the top hat, as he declined the services of a great whore, closing the backseat door of his limousine, destined for the theatre.

I only like boat stocks that are not at risk of imminent bankruptcy. I’ve done my homework on the sector and for my money, weighing risk versus reward, FRO is my top pick. DSX, however, is the easy, gentleman’s pick, with a pristine balance sheet and fancy men aboard its vessels.

FRO, on the other hand, are manned by pirates who shoot grape at fellow sea travelers and storm coastal towns for food and water.

This market has a toppy feeling to it. I am leaving my cash in cash for now. However, the boats and networkers look good to me now.

FFIV, JNPR, PANW, CIEN and FNSR can run on the CSCO beat.

Last night Christie’s enjoyed a record auction, selling crap from Basqiat and infamous drunk driver Pollock.

Look this is very simple. The regular economy sucks and the middle class, after inflation, are “enjoying” 1995 wages, all the while the Fed pumps $85 billion per month into the stock market. The result is a much wealthier upper class, who are then diversifying their winnings into collectibles. As long as the stock market and the elite do well, there will always be a proverbial bid under the shares of BID.

As far as the stock is concerned, it rarely goes up at the onset of the auction season, performing miserably in May. However, the stock should be bought in May and held all the way through. I will be looking to buy BID for long term accounts soon.

There are been 3 primary sectors driving the speculative fervor.

1. Solar
2. Biotech
3. Education

There are gains in other sectors too, but none more pronounced than those three. Are we to chase them up 50% over the past two weeks? While a fresh long might be able to squeeze another 5-10% out of this pistol hot sectors, the risk is decidedly to the downside.

If we are going to continue to run, look for the laggards to catch up. My commodity index is at a fresh 3 year low. Amazing, isn’t it? My social networking stocks have quadrupled, while miners got trounced for another 70%—since the Facebook ipo. I cannot support buying into a sector raining with falling knives; but nothing lasts forever, right? Even education stocks are up 35% and they’re all scams.

A stubborn and headstrong person will begin to accumulate the shares of beaten down commodity companies. I realize they are garbagio now. But today’s garbagio is tomorrow’s treasure.

The WFR and the rest of the solar space is in space. I like the ENPH story in solar.

Education stocks, like APOL and ESI, have roared– but I hate them because they always miss earnings.

MU is going to $14. Write it down. And Le Fly is going to get into a monster winner very soon.

All ideas are welcomed and will be investigated.

I have several names at the top of my list- but will not share them just yet for fears you leeches will front run me.

The tape isn’t that strong, so there’s always a chance of a wicked reversal. My CZR is under pressure, alongside several of my key holdings.

There’s nothing wrong with letting the bears enter the cabin to feed on the crumbs lying on the living room floor. When they are finished, lounged out by the fireside, we will jump on them from the rafters and stick pikes in their faces and tear off their stupid bear heads.

DEVELOPING…

This will be the easiest 5% made in the history of mankind.

You’re welcome.

I can’t buy solar here. I’d much rather try to get in ahead of any speculative coal run, via JRCC (I am long) and ANR.

Short squeezes are performing once again. Today I like ONE, SUPN, SLCA, SKUL and DMND.

But the market is fluid, so I will be looking for new ideas all day long and will be updating in real time inside of The PPT and 12631.

Interestingly enough, as of now, I am losing money for the day. This is unacceptable.

Are the shorts fearful of the stock going higher and are the longs greedy? If so, that stock might be setting up for a monstrous run.

I’ve been studying correlations all of my life. I like to know why things happen. Sometimes they’re random: but most of the time they’re by design. There are certain traits that are common in all short squeezes, none more than shares in the float. If the stock doesn’t have full institutional interest, like NFLX, CMG or GMCR, there must be a small amount of shares in the float in order to get the stock going–preferably under 20 million.

Of those shares, I like to monitor stocks that have at least 10% of its shares sold short. Due to liquidity concerns, I am looking for stocks that trade at least 100k shares per day. And, one of the most important factors is the “pain threshold.” If the stock hasn’t been moving higher, there is little incentive for the shorts to cover. You want to look for names that are up more than 10% over the past month.

Now we get to the proprietary stuff.

Since hundreds of you are now under a free trial membership of The PPT, you can view the screen I am about to reveal. It finds stocks that have jumped by more than 10% in its “Daily Hybrid” score, which is a ranking mechanism that combines both technicals and fundamentals to get a daily read out. When the technicals explode during a given day, which is decidedly different from the prior day, the Daily Hybrid score will spike.

I’ve studied thousands of short squeezes and none of them start without a large jump in daily hybrid.

A perfect example of what I just described lies in the share price action in ESI. Here is a recent history of the Daily Hybrid.

Had you bought the stock based on the upgrade to buy on that 40%+ hybrid change, you would’ve been long under $19 with the stock now trading above $25.

The last part of the puzzle is technical ranking. The technical scores must reach a minimum of 2 on a scale of 5, with 5 being the strongest.

Here are the results:

Since tomorrow is the last day of your trial, take advantage of what I am giving to you now and view this screen for more results tomorrow. Since it’s dependent on daily hybrid movers, the population of stocks will change daily.

This is what The PPT is all about, finding an edge in the market by taking all of the data available to us and deciphering it via the power of a predictive algorithm. There are many aspects to the tool. In no way is it one dimensional. But if I had to isolate just one aspect of the tool that I find to be most useful, this is it.

I closed up on the day, thanks to VHC and CZR, two of my larger positions. However, it wasn’t a gangbuster day, which has me a bit disappointed. I am chockfull of ideas and know exactly what stocks to trade. But I am in a “sell only” mode, as I am fully invested, made my bed; now it’s time to unwind and book gains.

The market is frenetic, and in my experiences, this is when you take the perverted foot off the pedal. Nonetheless, it should be noted, the villain is cloaked in cowardice, afraid to risk; therefore, he is afraid to live.

“Snatch his life away and leave him with nothing: break him.” (BEAS, 1776).

I have a screen in The PPT, one that I consider to be of the golden variety. It tells me the future.

The following stocks will undergo a short squeeze (pay attention)

VHC
HLF
YRCW
ANGI
TEAR
PSUN
ONE
BPI
DMND

MOAR tomorrow.

Many traders are viewing this tape second by second, clamoring for a pullback. They view any downtick in the tape as a sign that we’ve topped. Therefore, validating their own stupidity to remain cautious. Well, you can do that if you like. However, you’re missing out on one hell of a gamblers paradise.

Quit your micro managing and trade the tape.

Stiff pullbacks are underway in AAPL, TSLA and a variety of momo stocks. Some of my momo plays are weakening too, which gives me a bit of pause. However, I have a lot of cushion after the last week of unbridled advance. I’m also “re-excited” about the move in ARG. I am in for the $100 roll and will sell it north of $104.

In short, go eat a sandwich.

Reminder: I am the Rubicon. Don’t cross me.

NOTE: I added to IMMR and now find myself fully invested.

I like ANFI, CZR (top holding), VHC and IMMR. Also, as you know, I am long term bullish on FRO.

Some other stocks crossing my radar include ONE, SODA, DMND, ESI and TEAR.

This is a short squeeze tape and the offal is certainly in the ordinary drinking water for mass consumption. This isn’t going to last forever, but it isn’t going to end today.

Therefore, enjoy the grandeur of unchecked market melt ups and be sure to make sacrifices, human if possible, as a form of tribute to the stock markets gods.

The following stocks have castrated you over the past week.

TSLA (a regular knee slapper) +55%

ROIAK +44%

GMCR +31%

THRX +25%

SQNM +23%

OMER +21%

MCP +20%

ESI +20%

UBNT +20%

You’re basically giving your money away. You might as well make a bonfire out of it and roast some marshed-mallows with the kids, or donate it to some cancer charity, than fiddle around with explosive short positions. Knowing that the needle is pressed firmly to the temples of shorts, spearheaded by the retarded electric car company, TSLA, the following stocks may start running soon, joining the others, in a quest to bankrupt your dumb ass.

LEAP

WWAV

BRLI

LRN

AVG

HLF

GME

SODA

FRAN

VHC

Trade happily.